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Shkreli ordered to return 64 million dollars, is excluded from the pharmaceutical industry

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Shkreli ordered to return 64 million dollars, is excluded from the pharmaceutical industry

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A federal judge has ordered Martin Shkreli to return $64.6 million in profits he and his company made from inflating the price of the life-saving drug Daraprim and barred him from participating in the pharmaceutical industry for the rest of his life. his life

NEW YORK — Martin Shkreli must return $64.6 million in profits he and his former company reaped from raising the price of the life-saving drug Daraprim, a federal judge ruled on Friday while barring the ex-CEO defiant and imprisoned from participating in the pharmaceutical industry for the rest of his life.

U.S. District Judge Denise Cote’s decision came weeks after a seven-day trial in December. The Federal Trade Commission and seven states filed suit in 2020 against the man dubbed “Pharma Bro” in the media.

Shkreli’s attorney did not immediately respond to a request for comment.

Shkreli was CEO of Turing Pharmaceuticals – later Vyera – when he jacked up the price of Daraprim from $13.50 to $750 per pill, after securing exclusive rights to the decades-old drug in 2015. He treats a rare parasitic disease that strikes pregnant women, cancer patients and AIDS patients.

He defended the decision as working capitalism and said insurance and other programs ensured that people who needed Daraprim would eventually get it.

But the move sparked outrage from medical centers in Congress until the 2016 presidential campaign, when Hillary Clinton called it a price hike and future President Donald Trump called Shkreli a “spoiled brat.”

Shkreli eventually offered hospitals a halving, which is still a 2,500% increase. But patients normally take most of a week’s treatment after returning home, so they and their insurers are still faced with the price of $750 a pill.

He resigned as CEO of Turing in 2015, a day after he was arrested on securities fraud charges related to the hedge funds he ran before entering the pharmaceutical industry. He was found guilty and is serving a seven-year prison sentence.

Vyera Pharmaceuticals LLC was sued in federal court in New York by the FTC and seven states: New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia.

They alleged that Vyera raised the price of Daraprim and illegally created “a web of anti-competitive restraints” to prevent other companies from creating cheaper generic versions, including blocking their access to a key ingredient in the drug and the data that the companies want to assess the drug’s commercial potential.

Vyera and its parent company, Phoenixus AG, settled last month, agreeing to provide up to $40 million in 10-year relief to consumers and make Daraprim available to any potential generic competitor at the production price. of the drug.

Former Vyera CEO Kevin Mulleady has agreed to pay $250,000 if he violates the settlement, which barred him from working for a pharmaceutical company “for seven years.

Shkreli was put on trial.

Shkreli ordered to return 64 million dollars, is excluded from the pharmaceutical industry

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