Jordan Teo’s article on Turing Pharmaceuticals was a very interesting read. Very recently, Turing Pharmaceuticals reported a third quarter loss, most likely the fallout of the over the 5000% increase in the price of its product Daraprim, the drug used to treat AIDS.

The company Turing Pharmaceuticals is not to be blamed for this unethical behaviour, but rather the man who acquired the business: Martin Shkreli, an investment banker. In news interviews, Mr. Shkreli stated that the rate increase was “not excessive”, but was “altruistic”. He claimed that the drug was unprofitable and the new price allowed for “reasonable profits”.

Martin Shkreli: The Most Hated Man in the USA (as quoted from BBC)

Our class had a long discussion with Dr. David Silver, regarding corporate responsibility to stakeholders and the ethical derivation of profits. Mr. Shkreli, it seems, begs to differ. He has shrugged off his responsibility to stakeholders and engaged in price gouging in a very evident vulnerable target market with inelastic demand.

To some, Turings’ declining fortunes is a welcome karmic outcome. To me, this is a lesson in the consequences of unethical actions bringing harm and irreparable loss than lasting benefits. Another valuable insight is how ethics or a lack thereof, can add or take away value from a business.