KaloBios Pledges to Avoid ‘Price-Gouging’ in the Future

Source: International Business Times

Apr 12, 2016

KaloBios Pharmaceuticals, a California-based biotechnology company focusing on treatments for conditions such as Chagas disease, made a public pledge this week to be more transparent on drug pricing moving forward. According to International Business Times, the company swore it would “not engage in aggressive pricing or ‘price-gouging.’”

KaloBios was the focus of much criticism last year due to the direction of its former CEO Martin Shkreli, who became infamous after he increased the price of a medication by 5,456 percent.

At the time, Schkreli─a former hedge fund manager─was also serving as CEO of Turing Pharmaceuticals.

“Our new pricing model is a commitment to define and develop transparent, responsible pricing for the products we hope to bring to patients in the future,”  KaloBios Chairman and CEO Cameron Durrant said in a statement. “Drug pricing is a big concern for all stakeholders in healthcare. We believe that our approach balances the needs of key stakeholders, including patients, clinicians, payers, [nongovernmental organizations], investors, policymakers and advocacy groups.”

KaloBios fired Shkreli on Dec. 17, 2015, the same day he was arrested on securities fraud charges.

You can read the full release from KaloBios here.