Martin Shkreli was also ordered to pay $64 million in damages for monopolizing the market for a life-saving drug.
Martin Shkreli, the convicted “Pharma Bro” who was brought down by a drug pricing scandal in 2015, has been ordered to pay $64 million in damages for monopolizing the market for a life-saving drug.
Shkreli, the former CEO of Vyera Pharmaceuticals LLC, was also banned for life from the pharmaceutical industry in the antitrust ruling issued Friday by US District Judge Denise Cote in Manhattan.
New York Attorney General Letitia James, who filed the lawsuit with six other states and the US Federal Trade Commission, said in a statement that Shkreli was motivated by “envy” and “greed” when he decided to “Illegally raising the price of life-saving medicine while American lives hang in the balance.”
#BREAK: Martin Shkreli is no longer a ‘Pharma Bro’. A court found that the former CEO of Vyera Pharma illegally monopolized the market for the life-saving drug Daraprim.
The powerful can’t make their own rules, even though Shkreli thinks money rules everything around him.
— NY AG James (@NewYorkStateAG) January 14, 2022
Shkreli is already serving a seven-year sentence for securities fraud committed while running two hedge funds, even though the same drug, Daraprim, is at the heart of both cases.
Vyera, then known as Turing Pharmaceuticals, was launched by Shkreli in 2015. That’s when it acquired Daraprim, a previously affordable anti-infective used to treat a sometimes deadly parasitic infection, from the only existing supplier. Shkreli later raised the price from $17.50 to $750 per tablet.
Cote found that Shkreli made illegal deals with generic drugmakers to delay the introduction of cheaper versions of the drug after the price went up.
“Shkreli does not dispute that his intent was to prevent generic drug companies from launching competitive products that would threaten Daraprim’s price,” the judge wrote. “Plaintiffs have shown that the restrictions implemented by Vyera did just that.”
Last month, Vyera and another former CEO, Kevin Mulleady, agreed to pay up to $40 million to settle their involvement in the federal antitrust lawsuit brought by New York and other states.
(Updates with litigation details)