Page 383 - The Case Lab Book

Martin Shkreli

MANIPULATING
PHARMACEUTICALS

The main events of this case take place over the period of August 2015 to
July 2016 and charts the actions of Martin Shkreli the CEO of both Turing
and KaloBios Pharmaceuticals who claims, his goal is to invent new drugs

for rare diseases. Shkreli however, has a talent for identifying small biotech
companies, some of which thrive thanks to loopholes, legal frauds, pipe
dreams, and stock promoters and some with a smattering of real science.
In the case of Turing, after its acquisition, he increased the price of its

primary product, Daraprim by 5000% which generated hostile political and
media pressure.

Prior to the price rise in September 2015, one tablet of Daraprim cost
$13.50 (£8.70) in the US. After the rise one tablet of Daraprim costs $750
(£488).

Daraprim is known generically as pyrimethamine and was first approved by
the Federal Drug Administration in 1953

He followed this up by acquiring KaloBios and saw its share price rise from
$1 to $44 in just two weeks.

Martin Shkreli

33 year old (born April 1, 1983) who prides himself on his obsessiveness, with
real skill in digging through thousands of pages of drug trial results, is an
avid user of social media, tweeting images of $1000-plus bottles of wine he

likes and selfies of his helicopter rides and music he listens to.