Pharma names chairman to replace Shkreli as CEO
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[December 19, 2015]
Martin Shkreli, the poster boy for
prescription drug price increases who was arrested for securities fraud
this week, has stepped down from his post as chief executive officer of
Turing Pharmaceuticals Inc, the company said on Friday.
Shkreli was replaced by Turing Chairman Ron Tilles, who said in a
statement that the company was committed to continuing to make its
flagship drug, Daraprim, which is used to treat an infection called
toxoplasmosis in AIDS patients.
Shkreli has become a lightning rod for growing outrage over soaring
prescription drug prices after the company acquired Daraprim and
raised its price to $750 a tablet from $13.50.
Turing is the only manufacturer of Daraprim.
Shkreli has been under investigation for securities fraud related to
hedge fund MSMB Capital Management and biopharmaceutical company
Retrophin Inc <RTRX.O>. He was charged in Brooklyn, New York, on
Thursday in a federal indictment.
In October 2014, Shkreli was ousted from Retrophin, which he had
founded. The drugmaker sued him for $65 million, saying he had
breached his duty to the company.
In recent months, Shkreli has made controversial remarks in the
press about raising drug prices and taunted detractors, including
Democratic presidential candidate Bernie Sanders, on social media
Shkreli is also CEO of drugmaker KaloBios Pharmaceuticals Inc
<KBIO.O>. KaloBios, which had planned to shut down operations, named
him to that post on Nov. 20 after he and a consortium of investors
bought about 70 percent of its outstanding shares.
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Nasdaq has placed KaloBios' stock on a trading halt until the
company provides more information.
On Thursday night, Shkreli, who was released on a $5 million bond
earlier in the day, tweeted "Glad to be home. Thanks for the
(Reporting by Caroline Humer in New York and Vidya L Nathan in
Bengaluru; Editing by Sriraj Kalluvila and Lisa Von Ahn)
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