Christina Spicer  |  March 5, 2021

Category: Legal News

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Class action accuses Martin Shkreli and co of drug monopoly

The notorious “pharma bro” Martin Shkreli has reportedly been named in a class action lawsuit alleging he and his company, Vyera Pharmaceuticals, created a drug monopoly and raised the price of an HIV drug from $17.50 to $750 per pill.

Lead plaintiff, Blue Cross and Blue Shield of Minnesota, accused Shkreli and his company of stifling competition for Daraprin by purchasing rights to the drug in 2015, then withholding samples that would have allowed other companies to create generic alternatives, says The New York Post.

The conspiracy was hidden, the class action lawsuit alleges, allowing Shkreli to hike the price of the drug needed by those with HIV or other immunocompromised conditions to fight a specific parasitic infection. Court documents say that the infection, toxoplasmosis, can be fatal and requires patients to take multiple doses of the drug for weeks or even months.

The lawsuit, filed in New York federal court Thursday, claims that Vyera, along with its parent company, Phoenixus AG, Shkreli, and another executive, Kevin Mulleady, “executed a multifaceted plan to enrich themselves and maintain their monopoly.” Allegedly, Daraprin was targeted by the company because few patients need to use it and the drug could be closely controlled by the defendants.

According to a news release issued by Blue Cross and Blue Shield of Minnesota, the defendants owned 100 percent of the market for Daraprin and related drugs from 2015 until 2020, when the first generic option became available.

“Everyone deserves access to safe, effective, and affordable medication,” Dr. Craig Samitt, president and CEO at Blue Cross and Blue Shield of Minnesota said in a statement issued after the lawsuit was filed. “This lawsuit is an important step in advancing that goal. Drug companies need to be held accountable for their role in making sure health care costs are sustainable for all.”

Blue Cross and Blue Shield of Minnesota filed the class action lawsuit seeking to represent other third-party payers in over 30 states, along with Washington D.C. and Puerto Rico. The plaintiff is seeking damages based on market overcharges under the alleged anti-competitive conduct.

Martin Shkreli is currently in prison after being convicted on an unrelated fraud charge in 2017, reports Bloomberg.

Were you or a loved one affected by the alleged Shkreli drug monopoly? Do you think you paid inflated costs for Daraprin or other pharmaceuticals? We want to hear from you! Tell us about your experience in the comment section below.

The lead plaintiff is represented by Robins Kaplan LLP.

The Martin Shkreli Drug Monopoly Class Action Lawsuit is BCBSM Inc. v. Vyera Pharms. LLC, Case No. 21-cv-1884, in the U.S. District Court for the Southern District of New York.

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