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Pharma CEO Martin Shkreli Resigns After Being Charged in Fraud Case
Posted On Dec 22 2015
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Shkreli has become a lightning rod for growing outrage over soaring prescription drug prices after reports surfaced that Turing had raised Daraprim’s price to $750 a tablet from $13.50 after acquiring it.
Shkreli claimed that the revenue generated by the higher price of Daraprim would be used to fund research into new drugs, but most of the spending to date at Turing has gone to hiring scores of “business development” employees who sit in front of Bloomberg terminals in the NY office, according to people who have visited. Mr Shkreli, who reportedly received the news while he was being fingerprinted, accused his attorney of ‘outrageous and inhumane price gouging’. (AP Photo/Craig Ruttle)Shkreli’s charged with losing investors’ money through bad trades – then taking $11 million from his former company to pay disgruntled clients.
PROSECUTORS hauled U.S. vulture capitalist Martin Shkreli before judges on Thursday to face charges that he looted pharmaceutical company Retrophin of $11 million (£7.4m) to pay back disgruntled hedge fund clients. He pleaded not guilty.
Shkreli tweeted later that evening that he had returned home safely, and thanked his followers for their support. Dow Jones reported Friday Turing Pharmaceuticals is close to replacing Shkreli as its chief executive.
The charges instead involve his actions at another drug company, Retrophin, which he ran as CEO from 2012 to 2014.
Turing Pharmaceuticals Friday announced the resignation of Martin Shkreli from the position of CEO, and the appointment of Ron Tilles to the position of Interim CEO at the pharmaceutical company. That move drew the opprobrium of Congress, doctors and presidential candidates.
Turing, which Shkreli started after leaving Retrophin, is privately held. The company named Mr. Shkreli CEO in late November.
While KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) shareholders continue to wait on the NASDAQ to lift the current halt on shares, news has just broke that certainly can’t be good for this stock.
