(RepublicanDaily.org) – There have long been fierce debates about the freedom the pharmaceutical industry has to charge exorbitant prices for life-saving treatments. Advocates of lower prices say the government should step in to lighten the load for patients, while the opposing side says this type of intervention would stifle much-needed innovation. However, there’s a difference between charging high prices and illegal price-gouging, as so-called “pharma bro” Martin Shkreli knows very well.
On Tuesday, December 7, the Federal Trade Commission (FTC) announced it was set to recoup $40 million from Shkreli, his colleague Kevin Mulleady, and companies the pair were involved with over an illegal scheme. Seven states (California, Illinois, Virginia, North Carolina, New York, Pennsylvania, and Ohio) were also involved in the suit.
A pharmaceutical company formerly owned by Martin Shkreli will pay as much as $40 million to resolve price-gouging allegations brought by federal regulators and seven states. https://t.co/iWWhVcK6u2
— The Washington Post (@washingtonpost) December 8, 2021
The offenders broke antitrust laws when they increased the price of Daraprim, a life-saving drug used to treat HIV and other conditions, by around 4,000%. They also put restrictions in place preventing patients from accessing substitute drugs, such as restricting resales by entering into agreements with competing drugmakers. According to the lawsuit, their actions caused tens of millions of dollars worth of damage to Daraprim consumers.
Martin Shkreli is currently serving a seven-year prison sentence for misleading investors about the health of two hedge funds he was in charge of.
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