Page 6 - Martin Shkreli Case Study

Shkreli – Thiola

Retrophin acquired the rights
to sell Thiola, which is used to
treat cystinuria.

Sufferers of cystinrula may take the drug for life, starting in early
childhood, in an effort to manage the rare and incurable disease that
afflicts about 20,000 patients in the United States and which causes
sufferers' bodies to constantly create kidney stones, causing
excruciating pain, severe organ damage and in some cases, death.
Thiola was approved to treat cystinuria by the US Food and Drug
Administration (FDA) in 1988 and was acquired by Retrophin in May
2014.

In September 2014 Retrophin
increased the price of Thiola
from $1.50 (£1) per pill to more
than $30 (£20) for the same
product - an increase of almost
2,000 per cent.
Shares of Retrophin Inc
jumped as much as 31 per

cent following the deal allowing
it to market Thiola.

Retrophin then proceeded to sue Shkreli for $65million, after accusing
him of looting the company. Retrophin then proceeded to sue Shkreli for
$65million, after accusing him of looting the company. Retrophin's 2015
SEC Complaint claimed that Shkreli created MSMB Healthcare and
Retrophin "so that he could continue trading after MSMB Capital became
insolvent and to create an asset that he might be able to use to placate
his MSMB Capital investors." Shkreli's former hedge fund, MSMB was
left 'virtually bankrupt' after Shkreli made a single trade with Merril Lynch
in February 2011 it was claimed.