‘Pharma Bro’ Company Reaches $ 40 Million Settlement in Scam Case – .

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‘Pharma Bro’ Company Reaches $ 40 Million Settlement in Scam Case – .


Company Formerly Owned By ‘Pharma Bro’ Martin Shkreli To Pay Up To $ 40 Million To Settle Claims It Raised The Price Of Life-Saving Drug By About 4,000% After Obtaining Exclusive Rights To The Drug , the Federal Trade Commission. announced Tuesday.

The FTC says Vyera Pharmaceuticals LLC and its parent company, Phoenixus AG, have agreed to settle allegations that they have abused buyers and monopolized sales of Daraprim, which is used to treat toxoplasmosis, an infection that can be fatal. for people living with HIV or another immune system. problems and can cause serious problems to infants born to infected women during pregnancy.

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Vyera increased the price of the decades-old drug from $ 17.50 to $ 750 a pill after securing exclusive rights to it in 2015.

“It should be a really nice investment for all of us,” Shkreli said in an email to a contact at the time.

FILE – Pharmaceutical chief Martin Shkreli speaks on Capitol Hill in Washington on February 4, 2016. A company formerly owned by Shkreli will pay up to $ 40 million to settle claims it raised the price of a life-saving drug of about 4.0

The increase left some patients with copayments of up to $ 16,000 and sparked an uproar that fueled congressional hearings.

The company has been sued in New York federal court by the FTC and seven states: New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia.

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The lawsuit alleged that Vyera had increased the price of Daraprim and illegally created “a network of anti-competitive restrictions” to prevent other companies from creating cheaper generic versions, including by blocking their access to a key ingredient in the drug and to drug data. companies. would like to assess the commercial potential of the drug.

An after-hours email to Vyera requesting comment was not immediately returned. But after filing the lawsuit last year, the company called its claims unfounded and denied that its actions froze any potential competitors.

“PHARMA BRO” MARTIN SHKRELI MONOPOLIZED A SAVING MEDICINE “DURING INCARCERATION”: CONTINUED

The settlement filed Tuesday requires Vyera and Phoenixus to provide up to $ 40 million in aid over 10 years to consumers allegedly defrauded by their actions and requires them to make Daraprim available to any potential generic competitor at the cost of the drug production.

Former Vyera CEO Kevin Mulleady has agreed to pay $ 250,000 if he violates the regulations, which typically prohibits him from “working for, consulting or controlling a pharmaceutical company” for seven years, according to a statement from the FTC.

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The settlement does not stop the litigation against Shkreli, who has been dubbed the “Pharma Bro” and allegedly staged the scheme as Vyera’s first CEO. The lawsuit against him by the FTC and the States is due to be tried next week.

Shkreli is currently serving a seven-year prison sentence for a securities fraud conviction related to the hedge funds he ran before entering the pharmaceutical industry.

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