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'Pharma Bro' firm reaches $40M settlement in gouging case
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A company once owned by "Pharma Bro" Martin Shkreli will pay up to $40 million to settle allegations that it jacked up the price of a life-saving medication by roughly 4 ,000% after obtaining exclusive rights to the drug, the Federal Trade Commission announced Tuesday.
The FTC said Vyera Pharmaceuticals LLC and its parent company, Phoenixus AG, agreed to settle allegations that it gouged buyers and monopolized sales of Daraprim, which is used to treat toxoplasmosis, an infection that can be deadly for people with HIV or other immune-system problems and can cause serious problems for children born to women infected while pregnant.
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Vyera raised the price of the decades-old drug from $17.50 to $750 per pill after obtaining exclusive rights to it in 2015.
"Should be a very handsome investment for all of us," Shkreli put it in an email to a contact at the time.