Mission Locked: Why Life Sciences Companies Should Consider the Public Benefit Corporation

In 2015, Turing Pharmaceuticals (“Turing”) acquired the rights to Daraprim, a life-saving antiparasitic drug. Under Martin Shkreli’s leadership, Turing raised Daraprim’s price overnight from $13.50 to $750 per pill, an increase exceeding 5,000%. Had Turing been organized as a public benefit corporation (PBC), with a public benefit purpose focused on drug affordability or access to essential medicines, Turing could not have made this decision without balancing the financial benefit against its ability to achieve its public benefit, as well as the impact on other stakeholders. Turing’s board would have had a legal obligation to weigh patient welfare against the additional revenue the price hike was expected to generate.

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