Pharma Bro’s Company Reaches $40M Settlement In Price Gouging Suit

Martin Shkreli, known as “Pharma Bro,” former drug company and its parent company have agreed to pay up to $40 million to settle a complaint over allegations they “fleeced patients” by hiking up the price of a life-saving medication by around 4,000 percent.

Shkreli, best known for drug price-gouging and a snarky online persona, gained international notoriety over the allegations against him and is currently in prison for security fraud.

US Federal Trade Commission said in a statement that its commission and state co-plaintiffs, including New York, California and Illinois, had filed an order in court that “shuts down (the) illegal scheme” that it said was “masterminded” by Shkreli to exploit patients “dependent on the life-saving drug Daraprim.”

Daraprim is used to treat toxoplasmosis, an infection caused by a parasite that can be deadly for those with HIV, as well as for others with health issues related to the immune system. It can also create health issues for children born to those who are infected while pregnant.

The order comes after the antitrust complaint was filed in January 2020 against Shkreli, as well as against his associate Kevin Mulleady, their company Vyera Pharmaceuticals, LLC, and its parent company Phoenixus AG.

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