‘Pharma Bro’ firm settles lawsuit in New York over drug prices (1)

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Vyera Pharmaceuticals LLC, the company formerly run by a convicted “Pharma Bro” Martin shkreli, agreed to pay up to $ 40 million to resolve a federal antitrust lawsuit brought by New York City over a drug price scandal in 2015.

Under a settlement agreement, the former CEO of Vyera Kevin mulleady will be excluded “from almost any role in a pharmaceutical company for seven years,” Attorney General said Letitia james said Tuesday in a statement.

A joint petition outlining the settlement has been filed in federal court in Manhattan, where James and the US Federal Trade Commission filed a lawsuit in January 2020. They alleged that the company and former executives violated antitrust law by increasing the price of a crucial drug. through 4000% overnight in 2015.

“Vyera and Mulleady, as well as Martin Shkreli, have shamelessly engaged in illegal conduct that has allowed them to maintain their exorbitant and monopolistic price of a life-saving drug – leaving the pharmaceutical brothers to get rich, while d ‘others were paying the price,’ said James.

The trial in the New York and FTC case against Shkreli is scheduled to begin on December 14. He is already serving a seven-year sentence for securities fraud committed while running two hedge funds.

Mulleady’s attorney, Kenneth David of Kasowitz Benson Torres LLP, declined to comment.

The allegations in the civil case are separate from what landed Shkreli behind bars, although the drug at the center of the case – Daraprim – is the same. Shkreli started Pharmaceutical Turing, now Vyera, in 2015. As part of operating the business, Shkreli acquired Daraprim, a once affordable anti-infective for a sometimes fatal parasitic infection.

The FTC and New York say the company then increased the price and used a complex web of contractual restrictions to block generic versions.

(Updates with details on the lawsuit against Shkreli.)

To contact the reporter on this story:
Erik Larson in New York at elarson4@bloomberg.net

To contact the editors responsible for this story:
Katia Porzecanski at kporzecansk1@bloomberg.net

Tina Davis, Steve Stroth

© 2021 Bloomberg LP All rights reserved. Used with permission.


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