Fake Pharma - Martin Shkreli
The Story
As CEO of Turing Pharmaceuticals, Martin Shkreli acquired the rights to Daraprim, a life-saving anti-parasitic drug that had been on the market for decades. He immediately raised the price from $13.50 to $750 per pill, a 5,000% increase. While technically legal, the move was widely condemned as predatory and immoral, making him 'the most hated man in America.'
🚩 Red Flags
- Acquiring a niche, essential drug with no competition
- Massive, unjustified price hikes overnight
- Defensive and combative public responses
- History of controversial financial dealings
- Prior SEC investigations
⚖️ The Fallout
Shkreli was widely vilified. He was later convicted and sentenced to 7 years in prison for an unrelated securities fraud scheme from his hedge fund days. He was banned from the pharmaceutical industry for life.
📚 Lessons Learned
Highlighted the ethical limits of capitalism and the vulnerability of niche drug markets. Sparked a national conversation about drug pricing.
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