The Federal Trade Commission (FTC) and New York Attorney General Letitia James filed a lawsuit against ‘Pharma Bro’ Martin Shkreli and Vyera Pharmaceuticals.
The FTC and AG James alleged that Shkreli and Vyera Pharmaceuticals formerly known as Turing Pharmaceuticals, engaged in an elaborate scheme to preserve its illegal monopoly of Daraprim, the only FDA-approved life-saving treatment for people with a parasitic infection called toxoplasmosis and those with Human Immunodeficiency Virus (HIV).
Shkreli previously served as CEO of the pharmaceutical company, which acquired the rights to Daraprim in August 2015. After the acquisition, they immediately increased its price from $17.50 to $750 per tablet.
Allegations against Shkreli, Vyera Pharmaceuticals
The life-saving medication had been affordable for more than 60 years before Vyera Pharmaceutical acquired the rights to it. The defendants knew that the price increase will attract generic competition.
Shkreli and the pharmaceutical company restricted the sale and distribution of Daraprim to prevent generic companies from obtaining sufficient pills to complete bioequivalence tests, which are necessary to obtain approval by the FDA. The defendants also prevented competitors from getting access to a key ingredient used to manufacture the medicine, according to the FTC and AG James.
