Scoop: Martin Shkreli bats back a coup at Turing, new board considers a sale of assets

Martin Shkreli had a little business to attend to before his fraud trial got started in Brooklyn today.

Eliseo Salinas

In a showdown last week with chief scientist and CEO Eliseo Salinas, Shkreli handily orchestrated a sweep of the board at Turing Pharmaceuticals, gaining the election of 5 new board members — a group that includes several executives with close business ties to Shkreli. And Turing says in a statement that it will follow up on ongoing negotiations aimed at selling the biotech’s stock and assets, which are topped by Daraprim.

Kevin P. Mulleady

In the statement, the company confirmed part of what I’ve been hearing, noting that 5 new board members have been elected at Turing. They are:

  • Akeel Mithani, chief financial officer, Godel Systems, a company which Shkreli has reportedly been working on;
  • Kevin P. Mulleady, chief executive officer, The Stone Corner Group, and a close associate of Shkreli’s;
  • Edward Painter, chief executive officer, A2A Pharmaceuticals, who’s worked in business development and investor relations at Turing while Shkreli ran the company;
  • Monica Richardson, managing partner, RHM Consulting Group;
  • Jordan Walker, founder, Kindly.

Edward Painter, A2A Pharmaceuticals

The new board’s first task, according to Turing:

Following the meeting, the new board began the process of moving the company forward, including a review of Turing’s management team and recent credible offers that Turing has received from reputable pharmaceutical entities for the acquisition of company stock or assets.

The company did not respond to my query on the current status of Salinas and SVP Eve Costopolous and board member Alex Zyngier.

Someone close to the company tells me that Turing has also received another third party offer for Daraprim, the rare disease generic that got the Shkreli controversy rolling when Turing acquired it and then jacked the price more than 5000%. The offer is a mix of cash and milestones in the same ballpark as the $100 million offer that we reported on earlier.

Shkreli went on trial this morning, with jury selection underway as prosecutors pursue accusations that Shkreli looted Retrophin, in part to pay back the investors in his hedge fund who had lost their money.

Image: Martin Shkreli speaks during a Bloomberg Television interview, late 2016 Getty/Bloomberg

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Research Scientist - Immunology
Recursion Pharmaceuticals Salt Lake City, UT
Director of Operations
Atlas Venture Cambridge, MA

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