Drug company CEO calls 400% price hike 'moral requirement'

Nirmal Mulye, CEO of Nostrum Laboratories, described a 400% price increase of the company's antibiotic nitrofurantoin as a "moral requirement," prompting widespread criticism.
Nostrum Laboratories, based in Missouri, raised the price of nitrofurantoin last month from $474.74 a bottle to $2,393.

Nirmal Mulye, CEO of Nostrum Laboratories, described a 400% price increase of the company's antibiotic nitrofurantoin as a "moral requirement," prompting widespread criticism.
Nostrum Laboratories, based in Missouri, raised the price of nitrofurantoin last month from $474.74 a bottle to $2,393. The drug treats urinary tract and bladder infections. "I think it is a moral requirement to make money when you can to sell the product for the highest price," Mulye said, adding that the branded version of the drug increased in price to $2,800. "The point here is the only other choice is the brand at the higher price. It is still a saving regardless of whether it is a big one or not," he said. "There's no moral imperative to price gouge and take advantage of patients," In response to Mulye's comments, FDA Commissioner Scott Gottlieb tweeted: "FDA will continue to promote competition so speculators and those with no regard to public health consequences can't take advantage of patients who need medicine."