Pharma menace Martin Shkreli's old company to pay up to $40M to states for Daraprim price gouging
The Federal Trade Commission and seven states on Tuesday announced a new order under which the states will recoup $40 million from pharma badboy Martin Shkreli, who’s currently in prison for securities fraud, and who spiked the price of an old, cheap toxoplasmosis drug Daraprim by 4,000% overnight.
The order follows a January 2020 complaint against Shkreli, his associate Kevin Mulleady, who’s banned from working in for pharma for 7 years, their company Vyera Pharmaceuticals and its parent company Phoenixus AG. The complaint alleged that Shkreli and Mulleady not only hiked the price of Daraprim but used restrictive distribution and supply agreements, as well as data secrecy, to illegally block cheaper generic versions of the drug.
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