"Pharma Bro" company Vyera Pharmaceuticals settles with FTC
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.
- Kevin Mulleady, Shkreli's associate, is also banned from any role in the pharmaceutical industry for seven years, according to New York Attorney General Letitia James.
Between the lines: Shkreli did not reach a settlement in the lawsuit and is set to begin trial Dec. 14.
- Shkreli was sentenced to seven years in prison on federal charges of wire and securities fraud in 2018.
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.