The imprisoned businessman Martin Shkreli, also known as “Pharma Bro”, has been sued by the New York state attorney general and the Federal Trade Commission (FTC) for implementing tactics that kept competition at bay.
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Shkreli has previously been the recipient of public outcry for having increased the price of a drug by approximately 4,000%. The medicine, Deraprim, is used for a parasitic infection that can be life-threatening. He has been widely seen as an emblem of profiteering pharmaceutical companies. Shkreli and his company, Vyera Pharmaceuticals, purchased Deraprim in August 2015 and increased the price to $750 per pill overnight.
In a statement, New York Attorney General Letitia James said, “Martin Shkreli and Vyera not only enriched themselves by despicably jacking up the price of this life-saving medication by 4,000 percent in a single day, but held this critical drug hostage from patients and competitors as they illegally sought to maintain their monopoly. We filed this lawsuit to stop Vyera’s egregious conduct, make the company pay for its illegal scheming, and block Martin Shkreli from ever working in the pharmaceutical industry again. We won’t allow ‘Pharma Bros’ to manipulate the market and line their pockets at the expense of vulnerable patients and the health care system.”
Deraprim has had a monopoly in the market as the only drug approved by the FDA to treat toxoplasmosis. After purchasing Deraprim, Shkreli and Vyera also, “altered its distribution, and engaged in other conduct to delay and impede generic competition. The high price and distribution changes limited access to the drug, forcing many to make difficult and risky decisions for the treatment of a life-threatening disease,” per the statement.
The lawsuit is looking to get repayment for the “illegally obtained profits”, as well as a lifetime ban on Shkreli from ever working in the pharmaceutical industry again.
Reference: NY State Attorney website
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