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The real reason why pharma companies give a lot of money to charity

It’s to cover up drug price hikes, a report in Bloomberg News has found.  That’s why the first thing controversial former Turing Pharmaceuticals CEO Martin Shkreli did after raising the price for a drug 5,000% is contact a charity. In a nutshell, according to the report: A million-dollar contribution from a pharmaceutical company to a copay charity … Continue reading “The real reason why pharma companies give a lot of money to charity”

It’s to cover up drug price hikes, a report in Bloomberg News has found. 

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That’s why the first thing controversial former Turing Pharmaceuticals CEO Martin Shkreli did after raising the price for a drug 5,000% is contact a charity. In a nutshell, according to the report:

A million-dollar contribution from a pharmaceutical company to a copay charity can keep hundreds of patients from abandoning a newly pricey drug, enabling the donor to collect many millions from Medicare.

Great for Shkreli. Not so great for sick people or taxpayers.

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About the author

Christina Farr is a San Francisco-based journalist specializing in health and technology. Before joining Fast Company, Christina worked as a reporter for VentureBeat, Reuters and KQED

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