Pharma boss Shkreli resigns after arrest

Turing announced that its founder and current chairman, Ron Tilles, would replace Martin Shkreli on an interim basis, wishing him “the best in his future endeavors”.

Turing representatives didn’t respond to an emailed request for comment on Tilles’ role at Retrophin, and the company’s voicemail inbox was full on Friday afternoon. The charges were related to Shkreli’s time managing two hedge funds he founded and Retrophin, a biotechnology firm he started in 2011 and was ousted from three years later. Shkreli pleaded not guilty to the charges and is now out on bond.

In addition to fines and repayments, the government is seeking to bar Shkreli and his lawyer, Evan Greebel, from serving as officers or directors of companies.

Prosecutors said Thursday the 32-year-old entrepreneur ran his ventures “like a Ponzi scheme”. If convicted, faces up to 20 years in prison.

Internally, Shkreli’s tenure at Turing was marked by his exorbitant spending.

Shkreli previously faced widespread criticism in September when his new company, Turing, acquired Daraprim – a medication used to treat parasitic infection toxoplasmosis – and increased its price from $13.50 per pill to $750. “Thanks for the support”. Mr Shkreli claimed that the price was now more in line with those of other drugs for rare diseases. Part of the national obsession with Shkreli – whose Google searches soared higher than Donald Trump’s yesterday – is just that Shkreli lifted a drug price and just wouldn’t stop talking about it.

Turing also said it was sending a similarly worded letter to doctors stressing that it will continue to offer financial assistance to eligible patients needing Daraprim who are either uninsured or have commercial insurance. However, Turing kept the price of Daraprim the same, offering discounts to hospital and financial aid for some customers. Most patients’ copayments will be capped at $10 or less a month. After his early-morning arrest, KaloBios shares fell 53 per cent before trading was halted.

The FBI said on Twitter that agents had not seized Shkreli’s copy of a one-off Wu Tang Clan album, which he bought for $2m (£1.3m).