What you should know
A company that was once owned by “Pharma Bro” Martin Shkreli will pay up to $ 40 million to settle allegations that it raised the price of a life-saving drug by about 4,000% after obtaining exclusive rights to the drug . The FTC and seven states sued Vyera Pharmaceuticals for allegedly gutting consumers and preventing competitors from making cheaper generic versions of the drug Daraprim after it was granted exclusive rights to it in 2015. Vyera was owned by Martin Shkreli. The drug treats a potentially fatal parasitic infection. Shkreli is currently serving seven years on fraud involving hedge fund securities
A company that was once owned by “Pharma Bro” Martin Shkreli will pay up to $ 40 million to settle allegations that it raised the price of a life-saving drug by about 4,000% after obtaining exclusive rights to the drug the Federal Trade Commission announced on Tuesday.
The FTC said that Vyera Pharmaceuticals LLC and its parent company Phoenixus AG have agreed to settle allegations that they have hollowed out buyers and monopolized the sale of daraprim, which is used to treat toxoplasmosis, an infection common to people with HIV or one Other immune system problems can be fatal and can cause serious problems in children of infected women during pregnancy.
Vyera raised the price of the decade-old drug from $ 17.50 to $ 750 per pill after receiving exclusive rights to it in 2015.
“Should be a very nice investment for all of us,” wrote Shkreli in an email to a contact at the time.
The increase resulted in some patients facing co-payments of up to $ 16,000 and sparked an outcry that fueled the Congressional hearings.
The company has been sued in federal court in New York by the FTC and seven states: New York, California, Illinois, North Carolina, Ohio, Pennsylvania, and Virginia.
The lawsuit alleged that Vyera had raised the price of Daraprim and illegally created “a web of anti-competitive restrictions” to prevent other companies from making cheaper generic versions by, among other things, increasing their access to a key drug ingredient and data to which company locks want to evaluate the market potential of the drug.
An out-of-hours email message to Vyera requesting a comment was not returned immediately. But after the lawsuit was filed last year, the company called its claims unfounded and denied that its actions shut out potential competitors.
The settlement, filed Tuesday, requires Vyera and Phoenixus to provide up to $ 40 million in relief over 10 years to consumers allegedly fleeced by their actions, and urges them to give Daraprim any potential generic competitor at the expense of the Manufacture of the drug available.
Former Vyera CEO Kevin Mulleady agreed to pay $ 250,000 if he breaches the settlement that, according to an FTC statement, has kept him from “working for a pharmaceutical company, advising it, for seven years or to control it ”.
The settlement does not stop litigation against Shkreli, who has been dubbed the “Pharma Bro” and allegedly became the first CEO of Vyera to launch the plan. The lawsuit filed against him by the FTC and states is due to go on trial next week.
Shkreli is currently serving a seven-year prison sentence on a hedge fund securities fraud conviction that he operated prior to entering the pharmaceutical industry.