logo
  

'Pharma Bro' Martin Shkreli Banned For Life From Pharma Industry

Infamous "Pharma Bro" Martin Shkreli has been banned for life from the pharmaceutical industry.

A federal judge in the Southern District of New York court imposed the judgment after finding Shkreli violated state and U.S. monopoly laws. The judge also ordered Shkreli to pay $64.6 million, the profits he earned from hiking the price of the life-saving drug Daraprim.

Attorney General of New York Letitia James and the Federal Trade Commission had sued Shkreli, his former company Vyera and a business partner Kevin Mulleady two years ago accusing him of "monopolizing" the life-saving drug Daraprim and exorbitantly raising the price by more than 4,000 percent overnight to $750 per pill. Daraprim is used to treat the parasitic disease toxoplasmosis, and, until relatively recently, was the only approved source of this life-saving medication by the U.S. Food and Drug Administration.

According to James, the court found that Shkreli violated both federal and state laws by engaging in anticompetitive conduct to protect monopoly profits on the life-saving drug Daraprim.

"'Envy, greed, lust, and hate,' don't just 'separate,' but they obviously motivated Mr. Shkreli and his partner to illegally jack up the price of a life-saving drug as Americans' lives hung in the balance," said Attorney General James. "But Americans can rest easy because Martin Shkreli is a pharma bro no more. A federal court has not only found that his conduct was illegal, but also banned this convicted criminal from the pharmaceutical industry for life and required him to pay nearly $65 million. This is on top of the $40 million we've already secured from Vyera. The rich and powerful don't get to play by their own set of rules, so it seems that cash doesn't rule everything around Mr. Shkreli. New Yorkers can trust that my office will do everything possible to hold the powerful accountable, in addition to fighting to protect their health and their wallets."

Daraprim was cheap and accessible for decades. However, in August 2015, Vyera purchased the drug, and increased the price dramatically overnight to a level that one former executive testified was "excessive", "crazy" and "irresponsible."

Further, Vyera, under Shkreli's control, altered its distribution and engaged in other conduct to delay and impede generic competition. The high price and distribution changes limited access to the drug, forcing many patients and physicians to make difficult and risky decisions for the treatment of life-threatening diseases.

Last month, Vyera and Mulleady entered into an agreement that, among other things, required the company to pay up to $40 million to offset ill-gotten gains and banned Mulleady from the pharmaceutical industry for seven years.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT