PESTLE Analysis of Turing Pharmaceuticals.

PESTLE is an analytical tool that is used to analyse 6 main areas of a company, or event. The 6 areas are:

  1. Political
  2. Economical
  3. Social
  4. Technological
  5. Legal
  6. Environmental.

In this post Turing Pharmaceuticals, who were recently made the headlines for all the wrong reasons, will be ananlysed.

Lorenzetti (2015) reported that Turing Pharmaceuticals recently purchased the rights to the 62 year old drug Daraprim, which is used in the treatment of toxoplasmosis and malaria, and raised the price by more than 5000%. Below are the implications the price increase has had.


There was uproar around the world when this news story broke, but it has since become a hot topic for the American Election campaigns. It is reported by Bloomberg (2015) that Hillary Clinton has set her sights on reducing the cost of drugs to the public. Bloomberg (2015) also reported that Donald Trump thought “it was disgusting what he did.”


By raising the price of the drug from $13.50 to $750 per pill means that “the annual cost of treatment for some patients to hundreds of thousands of dollars” (Alternet, 2015).

The price increase means that some patients, who already live near, or on the breadline, may not be able to afford a basic treatment, while this company sit back and make millions of dollars. “Bernie Sanders wrote a letter to Shkreli saying, “This dramatic price increase will have a direct impact on patients’ ability to purchase their needed medications.”” (Williams, 2015)


The whole saga has done very little to improve the already poor public perception of Martin Shkreli, the CEO of Turing Pharmaceuticals. According to Salon (2015) Shkreli’s Twitter feed is awash with Eminem references, retweets filled with obsequious praise and obnoxious photos of helicopeter rides and expensive wines.


“Shkreli may also be able to prevent generic duplication of the drug by controlling its distribution, a tactic which prevents other companies from getting enough of the drug to test.” (Alternet, 2015) This means that other companies are not able to research new ways of producing the drug, which potentionally means holding back any improvements that may come with advancing technologies.


“A bracing reminder that jacking up drug prices is perfectly legal.” (Almendrala, 2015)

So although there is nothing illeagal about Shkreli’s actions, it has incredible ethical repercussions.


No direct effect on the environment could be found.

Please see reference list attached for sources used.

Reference List


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