Pharma Bro Shkreli and Others Sued Over Daraprim 5000% Price Hike
Martin Shkreli, the “pharma bro” in jail for defrauding traders, faces a suit lodged by the Federal Trade Commission and New York attorney general’s workplace for an alleged scheme to preserve his monopoly for the drug Daraprim, whose price elevated by around 5,000% overnight.
The case blames a company that Shkreli once ran for acquiring the rights in 2015 to Daraprim, which is prescribed to treat toxoplasmosis – an illness resulting from an infection with a parasite – and soon elevating the price from $13.50 per pill to $750 while taking measures to ensure there wouldn’t be a cheaper generic model of the medicine.
The firm named is Vyera Pharmaceuticals, previously Turing Pharmaceuticals, which was led by Shkreli.
Shkreli, who’s in prison in Pennsylvania, turned notorious as “Pharma Bro” when he sharply hiked the price of Daraprim while CEO of Turing Pharmaceuticals.
The suit also names Shkreli associate Kevin Mulleady, the FTC stated. The FTC and the New York attorney general’s workplace are searching for monetary relief for individuals who overpaid for the drug and an order demanding the corporation to halt illegal conduct.
A lawyer for Shkreli, 36, did not reply to a request for comment. Shkreli is reported to be released in September 2023, based on the Federal Bureau of Prisons.
The FTC alleged that the company protected its dominance of the medicine by limiting distribution to ensure generic drug manufacturers could not get the samples necessary to make their version of the drug.
The company prevented potential rivals from buying one of many drugs’ ingredients, the FTC stated.
The U.S. Supreme Court stated in November that Shkreli should stay in jail, rejecting his effort to reverse his conviction and a seven-year sentence for securities scam and conspiracy.