Sun. Jan 23rd, 2022

Martin Shkreli to return $ 89.6 million in profits he and his former firm reaped by raising the price of the life-saving drug Daraprim, a federal judge ruled on Friday, while also excluding the provocative, imprisoned former CEO from joining the pharmaceutical industry for the rest of his life.
U.S District Judge Denise Cote’s ruling came several weeks after a seven-day trial in December.

The Federal Trade Commission and seven states brought the case in 2020 against the man who was called “Pharma Bro” in the media.

Martin Shkreli is to return $ 89.6 million in profits.
Martin Shkreli is to return $ 89.6 million in profits. (AP)

Shkreli’s lawyer did not immediately respond to a request for comment.

Shkreli was CEO of Turing Pharmaceuticals, later Vyera, when it raised the price of Daraprim from $ 18.73 to $ 1,040 per pill, after acquiring exclusive rights to the decades-old drug in 2015.

It treats a rare parasitic disease that affects pregnant women, cancer patients and AIDS patients.

He defended the decision as capitalism at work, saying that insurance and other programs ensured that people in need of Daraprim would eventually get it.

But the move sparked outrage from medical centers to Congress to the 2016 president’s campaign trail, where Hillary Clinton called the price-cutting and future president Donald Trump called Mr. Shkreli “a spoiled brat.”

Shkreli eventually offered the hospitals a half discount, which still equates to an increase of 2,500 percent.

However, patients usually take most of the week-long treatment after returning home, so they and their insurance companies still faced the price of $ 1,040 per day. pill.

Shkreli has also been barred from participating in the pharmaceutical industry for the rest of his life.
Shkreli has also been barred from participating in the pharmaceutical industry for the rest of his life. (AP)

He resigned as Turing’s CEO in 2015, a day after he was arrested on charges of securities fraud involving hedge funds he ran before entering the pharmaceutical industry.

He was sentenced and sentenced to seven years in prison.

Vyera Pharmaceuticals LLC was sued in a federal court in New York by the FTC and seven states: New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia.

They claimed that Vyera was raising the price of Daraprim and illegally creating “a network of anti-competitive restrictions” to prevent other companies from creating cheaper generic versions by, among other things, blocking their access to a key ingredient in the medicine and to data companies would like to assess. the market potential of the medicinal product.

Vyera and its parent company, Phoenixus AG, settled last month and agreed to provide up to $ 55 million in emergency aid over ten years to consumers and to make Daraprim available to any potential generic competitor at the expense of producing the drug.

Former Vyera CEO Kevin Mulleady agreed to pay $ 346,000 if he violated the settlement, which prevented him from working for a pharmaceutical company for seven years.

Shkreli proceeded to the trial.

Leave a Reply

Your email address will not be published. Required fields are marked *