“Pharma Bro” Shkreli’s Former Pharmaceutical Company Pays $40 Million to Settle Antitrust Suit

  • A bipartisan group of AGs, led by New York AG Letitia James, and the FTC reached a settlement with pharmaceutical company Vyera Pharmaceuticals (formerly known as Turing Pharmaceuticals) and its parent company (collectively “Vyera”) as well as one of its former CEOs, Kevin Mulleady, to resolve allegations that Vyera engaged in anticompetitive and monopolistic practices in violation of the FTC Act, the Sherman Act, and state antitrust laws.
  • The complaint alleged that Vyera, Mulleady, and another former CEO, “Pharma Bro” Martin Shkreli, used a monopoly in the market for the drug Daraprim, which, until recently, was the only FDA-approved treatment for the parasitic infection toxoplasmosis, to increase the price of Daraprim by 4,000 percent, to $750 per pill. The defendants also allegedly used anticompetitive practices, including restrictive distribution agreements and agreements designed to prevent the sale of pricing information to third-party data aggregators to maintain the monopoly and prevent generic competition.
  • Under the terms of the stipulated order, Vyera will pay up to $40 million into a settlement fund to be used for consumer redress, including an immediate payment of $10 million and up to $30 million over 10 years if its financial condition improves. In addition, Vyera is required to make Daraprim available to generic competitors at list price and provide prior notification to the FTC and the settling states about any transactions valued at $25 million or more, among other things. The stipulated order also bans Mulleady from working in the pharmaceutical industry for a period of seven years. The states’ and FTC’s suit against Shkreli continues.