In a resolute decision, the 2nd U.S. Circuit Court of Appeals in Manhattan has confirmed the lifetime ban of Martin Shkreli, the infamous pharmaceutical executive notorious for his exorbitant price hike of a life-saving drug. The ban, initially imposed in January 2022, was upheld on Tuesday, as the three-judge panel deemed the lower court’s judgment appropriate and justified.
Shkreli, also known as “Pharma Bro,” achieved notoriety as the CEO of Turing Pharmaceuticals in 2015 when he shockingly raised the price of the antiparasitic drug Daraprim by over 4,000%, pricing it at $750 per tablet from its original cost of $17.50 overnight. The ban comes as a consequence of antitrust violations and a court order for Shkreli to repay $64.6 million.
The case, brought forth by the U.S. Federal Trade Commission (FTC) with the support of several states, accused Shkreli of monopolizing Daraprim and employing coercive tactics to stifle generic competitors, impacting the availability of the drug crucial for treating toxoplasmosis, especially in AIDS patients.
U.S. District Judge Denise Cote, who imposed the ban, cited Shkreli’s “particularly heartless and coercive” actions as the basis for the injunction. The appeals court dismissed Shkreli’s claims that the injunction was too broad and violated his free speech rights by restricting him from discussing the pharmaceutical industry on social media.
Shkreli’s legal representative, Kimo Peluso, expressed discontent, stating that the sanctions exceeded legal limits, hinting at the possibility of a further appeal. Peluso also suggested that Shkreli might seek modifications or clarifications from Judge Cote.
Henry Liu, director of the FTC bureau of competition, hailed the decision as a victory for consumers seeking affordable medication. He emphasized the significance of holding corporate executives personally accountable for anticompetitive practices, underscoring the broader implications of the ruling.
Since his release from prison in May 2022, Shkreli has pursued a career shift, working as a software developer and consulting for a law office. The verdict reaffirms the consequences of Shkreli’s past misconduct and its potential impact on the pharmaceutical landscape.
The case is officially known as Federal Trade Commission et al v. Shkreli, 2nd U.S. Circuit Court of Appeals, No. 22-728.
