FTC asks court to hold Martin Shkreli in contempt for launching new drug company

FTC asks court to hold Martin Shkreli in contempt for launching new drug company

Martin Shkreli, whom you might know as “Pharma Bro,” launched a new company final yr known as “Druglike, Inc.” Now, the Federal Trade Commission (FTC) has asked a federal judge to hold him in contempt for failing to cooperate with the company in its investigation to decide whether or not launching the company violates his lifetime business ban. US District Court Judge Denise Cote imposed a lifetime ban on Shkreli that prohibits him from collaborating in the pharmaceutical business early final yr. Cote dominated that the previous pharma exec orchestrated an unlawful anticompetitive scheme to achieve a monopoly over Daraprim, a life-saving anti-malarial and anti-parasitic drug. 

After Shkreli’s former company, Turing Pharmaceuticals, obtained the manufacturing license for Daraprim, it raised the drug’s costs from $17.50 to $750 per pill. Cote sided with the FTC in the antitrust lawsuit the company filed in opposition to Shkreli in 2020 and ordered him to pay $64.6 million in damages, in addition to imposing a lifetime business ban in opposition to him. Prior to Druglike’s launch, Shkreli tried (and failed) to convince a choose to put the ban on hold, arguing that the general public may benefit from his future contributions to the business. Shkreli challenged the ban whereas he was serving time in federal jail after receiving a seven-year sentence in 2017 for defrauding buyers. He was launched from jail in May.

The FTC mentioned it began asking Shkreli for a compliance report and entry to related data, in addition to asking him to sit for an interview relating to Druglike, in October 2022. However, the company co-founder stored on disregarding its “repeated requests.” The company additionally mentioned that Shkreli has yet to pay any quantity of his $64.6 million high quality. It’s now asking the court to order Shkreli to adjust to its data requests inside 21 days of its determination. 

In a press release (PDF) for its launch, Druglike described itself as “a Web3 drug discovery software program platform.” The company mentioned it is constructing a “decentralized computing community” that “offers assets for anybody wanting to begin or contribute to early-stage drug discovery tasks.” In a press release, Shkreli mentioned “Druglike will take away boundaries to early-stage drug discovery, enhance innovation and permit a broader group of contributors to share the rewards.”

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