Dec 7, 2021 - Health

"Pharma Bro" company Vyera Pharmaceuticals settles with FTC

Martin Shkreli with his Lawyer and others.

Former pharmaceutical executive Martin Shkreli and lead defense attorney Benjamin Brafman speak to the press in 2017. Photo: Drew Angerer/Getty Images

The Federal Trade Commission announced on Tuesday a settlement agreement with Vyera Pharmaceuticals that will require the company to pay victims of its drug-pricing inflation scheme.

The big picture: The FTC and seven states accused Vyera along with former CEO and "Pharma Bro" Martin Shkreli of violating antitrust law when he raised the price of Daraprim by 4,000%.

Background: Vyera acquired the life-saving drug in 2015 "and immediately raised the list price from $17.50 to $750 per tablet," according to the FTC's statement.

  • He then "created a web of anticompetitive restrictions" that were meant to delay and slow down the production of generic versions of the drug.

Details: The order requires Vyera as well as its parent company Phoenixus AG to pay up to $40 million in relief for the victims.

Between the lines: Shkreli did not reach a settlement in the lawsuit and is set to begin trial Dec. 14.

What they're saying: Vyera, Mulleady and Shkreli "shamelessly engaged in illegal conduct that allowed them to maintain their exorbitant and monopolistic price of a life-saving drug — letting pharma bros get rich, while others paid the price," James said.

  • "This strong relief sets a new standard and puts corporate leaders on notice that they will face severe consequences for ripping off the public by wantonly monopolizing markets," FTC chair Lina M. Khan added.
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