Martin Shkreli got arrested

[neihn]

This punk is the CEO of a pharmaceutical company - I said earlier that 'I have no respects what so ever for the medical community in US' - I guess this is not going to change my thinking

http://finance.yahoo.com/news/turing...--finance.html

[ChiliPepr]

His arrest had nothing to do with the pharma companies....

It was due to securities fraud.

Quote:

Shkreli “engaged in multiple schemes to ensnare investors through a web of lies and deceit,” U.S. Attorney Robert Capers said in a statement. Shkreli was charged with securities fraud and conspiracy. A second defendant, lawyer Evan Greebel, of Scarsdale, New York, was charged with conspiracy and also pleaded not guilty.

Another good article describing the fraud can be found on Bloomberg.

[38Chevy454]

Can you say Karma is a bitch?

[easysurfer]

He was running a ponzi scheme.

[pb4uski]

Couldn't happen to a nicer guy. I hope they put him behind bars and throw away the key. The whole world is laughing at him. What an (_*_)!

[neihn]

Quote:

Originally Posted by ChiliPepr His arrest had nothing to do with the pharma companies.... ]Bloomberg[/URL].

Sorry, to me he should be arrested when he did this

"promptly raised the price from $13.50 to $750 per pill."

But off course, it is just me, many think it is okay.

[pb4uski]

While I think many would agree with you that raising the price is he did is not ok, unfortunately it is despicable but not illegal.

But inevitably, what goes around comes around and his 15 minutes of fame turned attention on him and I suspect was the start of his downfall.

[MRG]

Quote:

Originally Posted by pb4uski While I think many would agree with you that raising the price is he did is not ok, unfortunately it is despicable but not illegal. But inevitably, what goes around comes around and his 15 minutes of fame turned attention on him and I suspect was the start of his downfall.

+1
Funny how that happened.

[samclem]

Quote:

Originally Posted by pb4uski While I think many would agree with you that raising the price is he did is not ok, unfortunately it is despicable but not illegal.

He's a scummy guy and his arrest is good news. But let's not lose sight of the circumstances that made his previous "price gouging" possible: He was largely immune to the threat of competition because he was able to purchase an FDA-guaranteed monopoly.

In part:

Quote:

Daraprim is a generic, which means that the patent on the drug—a government-granted monopoly meant to encourage innovation—has expired and the relevant chemical structure (it’s called “pyrimethamine”) is in the public domain. Anyone could in principle come to market with a pyrimethamine drug identical to Daraprim. So what is it that Shkreli bought when he spent $55 million for the right to sell Daraprim? Easy question. He bought Daraprim’s Food and Drug Administration (FDA) approval. But why is that so valuable? Bringing a copy of Daraprim to market would require filing an Abbreviated New Drug Approval with the FDA. The new formulation would be tested to make sure it’s really the same, and as safe, as the previously approved generic. The FDA is notoriously slow and the process is expensive. Probably not $55 million expensive, however. Shkreli was willing to pay such a huge sum because he could see that no Daraprim copies were in the regulatory pipeline, meaning that, for a time, he would have a monopoly and could reap monopoly profits by callously demanding exorbitant prices from patients who have no alternative to the drug. The scandal of Martin Shkreli’s profiteering tells us very little about capitalism, per se, but it does tell us a lot about the perverse market incentives that overzealous regulation can create. “It’s easy to see that this issue is almost entirely about the difficulty of obtaining generic drug approval in the United States,” writes Alex Tabarrok, an economist at George Mason University who specializes in the political economy of drug approval. “[T]here are many suppliers in India and prices are incredibly cheap. The prices in this list are in India rupees. 7 rupees is about 10 cents so the list is telling us that a single pill costs about 5 cents in India compared to $750 in the United States!”

And we can't freely import the drug from India because--well, because of other laws/regulations.

[Brat]

I hope they grabbed his passport as a part of the bond.

[AllDone]

Another reason why hedge funds are investments for idiots.

[REWahoo]

I think he and Bernie Madoff will make great cellmates...

[jim584672]

He painted a huge target in himself by being such an @$#@$.

[audreyh1]

Quote:

Originally Posted by neihn This punk is the CEO of a pharmaceutical company - I said earlier that 'I have no respects what so ever for the medical community in US' - I guess this is not going to change my thinking http://finance.yahoo.com/news/turing...--finance.html

He wasn't originally a member of the medical community. He was a hedge fund manager who saw an opportunity to buy a pharmaceutical company and gouge customers.

[littleb]

Quote:

Originally Posted by 38Chevy454 Can you say Karma is a bitch?

Took the words out of my mouth.

[Walt34]

Quote:

Originally Posted by pb4uski Couldn't happen to a nicer guy. I hope they put him behind bars and throw away the key. The whole world is laughing at him. What an (_*_)!

My thoughts exactly.

[MBAustin]

I just hope that the FDA looks at other cheap generics that are currently single sourced and does something to incentivize a competitor to enter the market because I bet there are a bunch of other sleaze balls out there trying to do what he did. Of course, the fact he'll likely be in the news for awhile and then (hopefully) in the slammer a while longer may discourage some (even though that's not what he's going to jail for).

There's a special place in he!! waiting for him I hope.

[Meadbh]

Looks like he has resigned as CEO of Turing.

Martin Shkreli resigns as Turing CEO day after his arrest | CTV News

[Big_Hitter]

Quote:

Originally Posted by MBAustin I just hope that the FDA looks at other cheap generics that are currently single sourced and does something to incentivize a competitor to enter the market because I bet there are a bunch of other sleaze balls out there trying to do what he did. Of course, the fact he'll likely be in the news for awhile and then (hopefully) in the slammer a while longer may discourage some (even though that's not what he's going to jail for). There's a special place in he!! waiting for him I hope.

Someone has developed a generic for it.


http://www.huffingtonpost.com/entry/...b0443bb5637b35

[audreyh1]

I think the other company that tried to pull the huge price increase this year backed off already.

http://www.cnbc.com/2015/09/21/drug-...rescinded.html