According to Slate, Retrophin implemented a similar price increase for a kidney medicine when Shkreli ran the company.
implemented a 60% price increase in July 2011 for customers who both rented DVDs and streamed video, 800,000 users cancelled their service and the company's market cap plummeted by more than 70%.
Daniel Aaronson, in an oft-cited 2001 study, wrote that fast food outlets implement a one-time price increase within a month or two of a higher minimum wage being enacted — roughly 0.7% for a 10% wage boost.
Burelli, a private consultant based in the US, helped implement the last price increase in Venezuela, in 1996.
In a 1991 document entitled Summary of Group Marketing Strategies, the third strategy on the list is to "implement regular price increases, on an industry basis wherever possible, which at least cover inflation to secure adequate profitability... ......Nor do the documents refer merely to straightforward price collusion.
We believe that it is likely that the company implements another price increase in certain markets this fall," wrote WR Hambrecht & Co. analyst Kristine Koerber.
In addition, health insurance companies in some cases will implement large price increases that could dissuade consumers, though prices for the health insurance polices used to set subsidy levels appear more stable, suggesting that affordable options will remain available, at least in many markets.
"We continue to execute strategies designed to improve efficiencies and reduce operating costs, but it is essential that we implement price increases to recover these cost increases and sustain our viability as a valued supplier to our customers and their industries," he added.
