FTC says Shkreli is flouting lifetime pharma ban

The Federal Trade Commission (FTC) and several US states have accused Martin Shkreli of violating a lifetime restraining order preventing him from involvement in the pharma industry.

The regulator claims that 'pharma bro' Shkreli should be held in contempt for "flagrantly and repeatedly" trading in pharma industry stocks and broadcasting his opinions about the sector and the management of many drugmakers, including through livestreaming events.

The complaint is also calling for him to be fined the total amount of profit made from dozens of pharma-related trades and – if he refuses to stop the activity – send him back to prison.

In a social media post, Shkreli said that the action is "trying to limit a citizen's free speech" and "very surprising from Trump's FTC."

Shkreli was once dubbed "the most hated man in America" for his arrogant and defiant posturing whilst acting as chief executive of Turing Pharma, which hiked the price of off-patent HIV drug Daraprim (pyrimethamine) from $13.50 to $750 per tablet – leaving some patients forced to pay up to $16,000 in out-of-pocket co-pays.

That wasn't what led to Shkreli's imprisonment, however. In 2017, he was found guilty of securities fraud schemes involving two hedge funds, sending fake account statements to conceal huge losses, and of manipulating the price and trading volume of stock in Retrophin, another pharma company he founded in 2011. He was released from prison in 2022 with an injunction on "directly or indirectly participating in any manner in the pharmaceutical industry."

New complaint

Among the activities highlighted in the FTC complaint is Shkreli's public questioning of Cassava Sciences in 2024 – before it rebranded as Filana Therapeutics – and launching an aggressive short-selling campaign against the company, making significant profits when its Alzheimer's drug candidate simufilam disappointed in clinical trials.

This is the FTC's second attempt to hold Shkreli in contempt for violating the ban, having previously filed a complaint in 2023 after he set up a drug discovery company called Druglike. Shkreli argued he never held an active executive role or ownership stake in the start-up, which has since been dissolved.

"After a full trial, the court found that Martin Shkreli's conduct drove up prescription drug costs for American patients and blocked the entry of lower-cost generics," said Daniel Guarnera, director of the FTC's Bureau of Competition.

"When judgment is entered by a court, whether it's a settlement or an order following a trial, defendants must fulfil their obligations," he added. "Today's action should serve as notice that the FTC will not hesitate to enforce violations of court orders."