Shkreli Martin (Martin Shkreli)

Shkreli Martin (Martin Shkreli)

Biography

2022: $64.6 million fine for 55.5 times the price of toxoplasmosis drug

In mid-January 2022, a US court suspended Martin Shkreli from pharmaceutical activities for life and ordered him to pay $64.6 million in connection with his decision to set a 55.5-fold price for the drug for toxoplasmosis Daraprim and the struggle to block competitors who produce generics.

US District Judge Denise Kote in Manhattan ruled after a lawsuit in which the US Federal Trade Commission and seven states accused Shkreli, the founder of Vyera Pharmaceuticals, of using illegal tactics to prevent competitors of the drug Daraprim from entering the market.

For the first time, Shkreli's illegal affairs became known in 2015 after the price of Daraprim rose overnight to $750 per pill with $17.50. The drug treats toxoplasmosis, a parasitic infection that threatens people with weakened immune systems.

The 130-page judgment states that Shkreli created two companies, Vyera and Retrophin, designed to monopolize the drug market in order to profit "at the expense" of patients, doctors and distributors. Regulators have accused Vyera of maintaining its dominance over Daraprim, ensuring generic drug manufacturers cannot obtain samples for cheaper versions, and preventing potential competitors from buying the key ingredient.

According to the judge, the plan to implement Daraprim was "especially heartless and coercive," so a lifetime ban on Shreckley's activities in the pharmaceutical industry was necessary due to the danger that he would continue to use illegal tactics.

Shkreli's anti-competitive behavior to the detriment of public health was egregious and reckless, the judge noted. "He does not repent. To prevent him from repeating such conduct in the interest of justice.[1]

Notes