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Martin Shkreli, “pharma bro”, fired by KaloBios
Martin Shkreli is taken into Federal Bureau of Investigation custody in NY on Thursday.
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The controversial United States pharma boss and hedge fund figure Martin Shkreli has been fired as CEO of KaloBios Pharmaceuticals following his arrest on fraud charges, the firm said Monday, December 21.
Shkreli will be replaced on an interim basis by Ron Tilles, Turing Pharma’s chairman, at the privately held company, which has offices in NY and Zug in Switzerland.
In August, Turing Pharmaceuticals acquired Daraprim, often used to treat toxoplasmosis in people with compromised immune systems like AIDS patients, and the company immediately increased the price of the drug.
In a statement, KaloBios, said that Tony Chase also stepped down from the company’s board. Shares in KaloBios were hit hard as news of the arrest broke last week.
Prosecutors said in Brooklyn federal court that Shkreli repeatedly lost money for investors and then lied to them about it from 2009 to 2014.
In response to the backlash, Shkreli said that Turing would sell the drugs at a bulk rate to hospital groups and offered financial aid to those who couldn’t afford the drug.
Shkreli, on Friday, “resigned” as CEO from his other pharmaceuticals company, Turning, where he had jacked up the price of Daraprim.
On Saturday, Shkreli tweeted: “I am confident I will prevail”.
In his first interview since his arrest, Shkreli told the Wall Street Journal that he believed the charges were brought on due to his Daraprim price-gouging. He pleaded not guilty and was released on $5 million bail.
Shkreli was arrested last week for allegedly setting up a Ponzi-like scheme at his former hedge fund MSMB Capital Management and Retrophin Inc., a firm he headed before taking charge at his private company, Turing Pharmaceuticals Inc. “The allegations against me are baseless and without merit”.
Shkreli, if convicted of securities fraud, could face upwards of 20 years in prison.
Shkreli’s Twitter account was hacked over the weekend.
Unable to travel, Shkreli unsurprisingly returned to spending most of his time on social media talking about his favourite subject: himself.
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He admitted to the Journal that his brash public persona had become “a bit of an act” that would be “fun to experiment with”. On Monday morning, he tweeted that he has regained control of his account.