Page 162 - CL Armchair Case
P. 162
Conclusions
Shkreli’s business strategy is to a great extent based on his
ability to fund his growth. However, his recourse to
‘shorting’ has come back to haunt him in the form of the
SEC charging him with securities fraud and conspiracies.
Moreover, he was charged with looting his company’s
funds to pay back losses made on bad trades.
In addition Shkreli’s character and judgement are brought
into question. It would appear that he does himself no
favours whether in his business situation or outwith it. He
sees the acquisition of under maximised drug pricing as
an opportunity to raise prices and is willing to cover this by
passing the blame onto the insurance companies as they
fight with the medical fraternity over copay
responsibilities.
Shkreli’s MSMB company was less than successful and his
ventures into senior management at Retrophin, Turing
and KaloBios was likewise short lived and contentious. In
some senses he acted as a corporate raider stepping in
acquiring drugs to hike their prices.
