Nostrum Laboratories CEO Nirmal Mulye said “it is a moral requirement to make money when you can” in response to his decision to hike the price of an antibiotic by some 400 percent, according to a Financial Times report.
Nostrum in August raised the price of one bottle of nitrofurantoin, an antibiotic used to treat bladder infections, from $474.75 to $2,392, according to the report, which cites Elsevier’s Gold Standard.
The price hike, Mulye said, was in response to Casper Pharma’s decision in March to raise the price of its brand version, Furadantin, to $2,800.
“The point here is the only other choice is the brand at the higher price,” Mulye said. “It is still a saving regardless of whether it is a big one or not.”
Mulye also said he supported Martin Shkreli’s decision to raise the price of Daraprim from $13.50 to $750.
“I agree with Martin Shkreli that when he raised the price of his drug he was within his rights because he had to reward his shareholders,” Mulye said.