Drug exec takes the Fifth on Capitol Hill, angers lawmakers

[webfact]

Drug exec takes the Fifth on Capitol Hill, angers lawmakers
By MARCY GORDON

WASHINGTON (AP) — Infuriating members of Congress, a smirking Martin Shkreli took the Fifth at a Capitol Hill hearing Thursday when asked about his jacking up of drug prices, then promptly went on Twitter and insulted his questioners as "imbeciles."

The brash, 32-year-old entrepreneur who has been vilified as the new face of pharmaceutical-industry greed was summoned by the House Oversight and Government Reform Committee, which is investigating soaring prices for critical medicines.

Four times, he intoned: "On the advice of counsel, I invoke my Fifth Amendment privilege against self-incrimination and respectfully decline to answer your question."

Lawmakers erupted. Rep. Elijah Cummings of Maryland, the top Democrat on the committee, all but told Shkreli to wipe the smile off his face.

"I call this money blood money ... coming out of the pockets of hardworking Americans," he said as Shkreli sat through the lecture.

"I know you are smiling, but I am very serious, sir," Cummings said. "I truly believe you can become a force of tremendous good. All I ask is that you reflect on it. No, I don't ask, I beg that you reflect on it. "

The former hedge fund manager with a frat-boy swagger has been reviled in recent months for buying Daraprim, the only approved drug for a rare and sometimes deadly parasitic infection, and unapologetically raising its price more than fiftyfold.

Shkreli is out on $5 million bail after being arrested in New York in December on securities-fraud charges unrelated to the price increase.

Shkreli, wearing a sport jacket and open-collar shirt, was dismissed less than an hour into the hearing, but not before chairman Rep. Jason Chaffetz, R-Utah, shouted down a request by Shkreli's attorney to speak. Lawmakers instead took turns denouncing his conduct and attitude.

Minutes after he left — and even before the hearing had ended — Shkreli thumbed his nose at the committee.

"Hard to accept that these imbeciles represent the people in our government," the former CEO of Turing Pharmaceuticals tweeted.

Shkreli's attorney Benjamin Brafman later said in his defense: "He meant no disrespect, but in truth, statements made by some of the members of the committee were wrong, unfair and difficult to listen to without responding."

Shkreli calls himself "the world's most eligible bachelor" and "the most successful Albanian to ever walk the face of this Earth." He strums his guitar on YouTube and paid a reported $2 million for the only known copy of an album by the Wu-Tang Clan.

After Shkreli's departure, Turing's chief commercial officer and the interim CEO of Canada's largest drugmaker, Valeant Pharmaceuticals, received a bipartisan lashing from the lawmakers.

Internal documents released by the committee show that Valeant and Turing have made a practice of buying and then dramatically raising prices for low-cost drugs given to patients with life-threatening conditions such as heart disease, AIDS and cancer.

Chaffetz, an admitted "conservative guy" who accepts that companies need to make profits, said he was disgusted. And Rep. Carolyn Maloney, D-N.Y., told them: "This is a scandal, an absolute abuse of power, an abuse of the pharmaceutical industry."

With Shkreli mum, it was up to Turing's Nancy Retzlaff to defend the Daraprim price rise. She said the company invests in research and development, as well as programs that help patients afford drugs. Turing tries to strike the right balance between those needs and rewarding shareholders, Retzlaff testified.

"I don't believe my company has done anything wrong," she said.

As early as last May, Turing planned to turn Daraprim into a $200-million-a-year drug by dramatically increasing its price, according to documents obtained by the committee. Turing bought the 60-year-old drug in August for $55 million.

Shkreli said in an email to one contact: "We raised the price from $1,700 per bottle to $75,000. Should be a very handsome investment for all of us."

As for Valeant, documents indicate the company believed it could repeatedly raise the prices of the lifesaving heart drugs Nitropress and Isuprel without repercussions because the medicines are administered by hospitals, which are less price-sensitive than consumers.
___

AP Business Writers Tom Murphy in Indianapolis and Matthew Perrone in Washington contributed to this report.


-- (c) Associated Press 2016-02-05

[ezzra]

The US constitution and laws allows for such outcomes, so don't complain and hope that those

criminals will have a heart and respect the law, the world is full of unscrupulous people like this

maggot, and it's up to the authorities to find a solutions for them,

US of A, you have made your bed, now lie in in it,

[alfalfa19]

he will regret this, trust me. not only does time wound all heels, but the US govt has a way of getting people when they get pissed off enough. this unimpressive worm will find himself in hot water eventually.

[OMGImInPattaya]

"Grandstanding imbeciles" would have been more accurate...and truer words were never Tweeted ☺

[robblok]

Why don't i mind it anymore that drugs are copied and drug patents are breached.. with scum like that. Other countries should cancel their treaties about drugs with the US and just copy this drug and start selling it all over the world.

[NeverSure]

US of A, you have made your bed, now lie in in it,

I get sick of the USA bashing on here.

Too bad your puny country can't invent the drugs and equipment and procedures the USA does, eh?

It is often the profit motive that drives these discoveries and then other "more civilized" but tiny, inconsequential yet incompetent countries leach off them.

(You asked for it.)

Cheers.

[SOTIRIOS]

...it all comes down to whether he has been accepted in the club with 'the big boys' or not.......

...if he gets away with it....God Help those that require medication...and all health plans.....

[Inn Between]

It seems Martin Shkreli may just be one of the sleaziest of them all in one of the sleaziest industries of them all.

[robblok]

US of A, you have made your bed, now lie in in it,

I get sick of the USA bashing on here.

Too bad your puny country can't invent the drugs and equipment and procedures the USA does, eh?

It is often the profit motive that drives these discoveries and then other "more civilized" but tiny, inconsequential yet incompetent countries leach off them.

(You asked for it.)

Cheers.

This is not really USA bashing, but you are think it is meanwhile you bash Thais all the time.

This is just a fault in the system of the USA showing that 100% capitalism has its faults. It should not be possible to do something like this. Just imagine, holding the only life saving drug and then increasing the price by 10.. not because of a profit problem (is profit enough) cost did not go up nothing.

Its like telling a dying man you will help him but the price has just gone up 10 times. Morally this is totally wrong and the US system lets this happen. So no bashing its criticism based on facts.

[alanrchase]

It seems Martin Shkreli may just be one of the sleaziest of them all in one of the sleaziest industries of them all.

Might see him run for the GOP nomination next time.

[Kiwisailor]

Saw a similar example to this a couple of years ago at the border town of Koh Kong. Inbound travellers from Cambodia were taken for one on one discussions with a big fat Thai guy, who told you how much you would pay for a seat in his minibus for onwards travel. One farang with a broken leg trying urgently to get to the hospital in BKK was quoted double the price the others were paying. No-one in Koh Kong would take passengers without the approval of this guy.

[Lopchan]

The US constitution and laws allows for such outcomes, so don't complain and hope that those

criminals will have a heart and respect the law, the world is full of unscrupulous people like this

maggot, and it's up to the authorities to find a solutions for them,

US of A, you have made your bed, now lie in in it,

Don't often agree with you Ezzra, but on this one I give you two thumbs up

[Buddumber]

The former hedge fund manager with a frat-boy swagger has been reviled in recent months for buying Daraprim, the only approved drug for a rare and sometimes deadly parasitic infection, and unapologetically raising its price more than fiftyfold.

the current state of the predatory health care industry would indicate they would go even further: they would actively mass breed these parasites themselves and then release the deadly parasites to where they could infect new customers for their expensive drug

[Dustdevil]

The US constitution and laws allows for such outcomes, so don't complain and hope that those

criminals will have a heart and respect the law, the world is full of unscrupulous people like this

maggot, and it's up to the authorities to find a solutions for them,

US of A, you have made your bed, now lie in in it,

Sorry but your comment here is incoherent and not well thought out. As another poster noted, the U.S. government has a way of getting people who really piss it off, and even fight for the little guy sometimes. Remember the $multi-billion crook Bernie Madoff? There's a Wall Street monster who's now enjoying a permanent vacation at Club Fed.

[Dustdevil]

The former hedge fund manager with a frat-boy swagger has been reviled in recent months for buying Daraprim, the only approved drug for a rare and sometimes deadly parasitic infection, and unapologetically raising its price more than fiftyfold.

the current state of the predatory health care industry would indicate they would go even further: they would actively mass breed these parasites themselves and then release the deadly parasites to where they could infect new customers for their expensive drug

I like movies too. But they're just movies. You've seen too many!

[expat_4_life]

It's just another show trial/hearing to illustrate to the good people that our government cares and is capable of

representing the interests of the people.

They throw Martin Shkreli to the wolves while our representatives protect and take contributions from BIG PHARMA

and the American people continue to pay outrageous prices for drugs.

Don't get me wrong, I'm not a fan of this guy, but the hypocrisy is just so in your face.

Edited February 5, 2016 by expat_4_life

[NeverSure]

How many US made drugs would you folks like to permanently take off the shelves of the world because they were developed by "big pharma" for a profit motive? I mean, let's not be hypocrites, right?

Without the profit motive they never would have been made. Life expectancy wouldn't have risen. The US has developed so many life saving products because there is a profit in it and for no other reason.

This jerk is thumbing his nose at the United States Congress so let's just wait and see what kind of law they may pass to limit profiteering or perhaps to shorten the life of a patent. When the pendulum swings too far one way it always comes back. But the fact remains without the hope of a solid profit these things aren't going to be developed and distributed.

[robblok]

How many US made drugs would you folks like to permanently take off the shelves of the world because they were developed by "big pharma" for a profit motive? I mean, let's not be hypocrites, right?

Without the profit motive they never would have been made. Life expectancy wouldn't have risen. The US has developed so many life saving products because there is a profit in it and for no other reason.

This jerk is thumbing his nose at the United States Congress so let's just wait and see what kind of law they may pass to limit profiteering or perhaps to shorten the life of a patent. When the pendulum swings too far one way it always comes back. But the fact remains without the hope of a solid profit these things aren't going to be developed and distributed.

The US just went on inventions made by Europe, can you imagine if they were all patented before then medicine would never have evolved that fast. Your country is relatively new your building on inventions of the past. Seemed that before things were progressing good too without the absurd profits. Wonder how the US would have done without the inventions of Louis Pasteur for instance. Seems he did not get crazy risk from his enormous contribution to medicine. All inventions are build on the past but putting real long rights on inventions just hamper progress.

Nothing wrong with making a profit, hell I am all for capitalism, but not total capitalism. There should be a mechanism against stuff like this. Of course medicine companies should make some profit and get their investment back and time and money put in products that did not make it. But that is not the case here. It just shows that full capitalism as there is in the US does not work.

A balance should be struck.

[neverdie]

US of A, you have made your bed, now lie in in it,

I get sick of the USA bashing on here.

Too bad your puny country can't invent the drugs and equipment and procedures the USA does, eh?

It is often the profit motive that drives these discoveries and then other "more civilized" but tiny, inconsequential yet incompetent countries leach off them.

(You asked for it.)

Cheers.

It might come as a surprise to you but there's plenty of puny countries out there punching well above their weight when it comes to inventing stuff, medical and otherwise.

Of course, that's not part of the 'pedalled' information fed to American citizens, so there's a mild excuse for your ignorance.

[Andaman Al]

How many US made drugs would you folks like to permanently take off the shelves of the world because they were developed by "big pharma" for a profit motive? I mean, let's not be hypocrites, right?

Without the profit motive they never would have been made. Life expectancy wouldn't have risen. The US has developed so many life saving products because there is a profit in it and for no other reason.

This jerk is thumbing his nose at the United States Congress so let's just wait and see what kind of law they may pass to limit profiteering or perhaps to shorten the life of a patent. When the pendulum swings too far one way it always comes back. But the fact remains without the hope of a solid profit these things aren't going to be developed and distributed.

To be honest I am not sure the world would have an issue. Most Americans I know are on some type of drug/medicine for something or other, some of them take 4, 5, 6 different ones per day. I have never taken drugs/medicines in my life apart from the odd antibiotic for throat infections or medicines for flu etc. it seems a cultural thing in the USA. Docs get you hooked on medicines you don't need, that ensures money comes in and that ensures the market thrives. Meanwhile with all the money coming in they do little to cure cancer etc they just design a medical regime designed to cost as much as possible but offer little chance of success if you succumb to cancer and make all alternative treatments illegal. Just stay off the drugs/medicines. ( times out of 10 you don't need them and they are being subscribed by someone who makes his living off the number of medicines he sells. Just like Thailand really.

[Andaman Al]

It will wipe the smile off Shkreli's face when he is banged up for 20 years for securities fraud. Not that this incident with Congress will be subliminally stamped on the mind of the Judge who will be most inclined to deliver the maximum sentence

[Nomyai]

The US constitution and laws allows for such outcomes, so don't complain and hope that those

criminals will have a heart and respect the law, the world is full of unscrupulous people like this

maggot, and it's up to the authorities to find a solutions for them,

US of A, you have made your bed, now lie in in it,

Socialism doesnt work .

[Nomyai]

US of A, you have made your bed, now lie in in it,

I get sick of the USA bashing on here.

Too bad your puny country can't invent the drugs and equipment and procedures the USA does, eh?

It is often the profit motive that drives these discoveries and then other "more civilized" but tiny, inconsequential yet incompetent countries leach off them.

(You asked for it.)

Cheers.

It might come as a surprise to you but there's plenty of puny countries out there punching well above their weight when it comes to inventing stuff, medical and otherwise.

Of course, that's not part of the 'pedalled' information fed to American citizens, so there's a mild excuse for your ignorance.

These puny countries are puny! the people have to live under oppressive rule-no incentive to show smarts!

Capitalism does work. I bet the iq of n koreans would rise if the leader would let them be free.

[Andreas2]

This is not really USA bashing, but you are think it is meanwhile you bash Thais all the time.

This is just a fault in the system of the USA showing that 100% capitalism has its faults. It should not be possible to do something like this. Just imagine, holding the only life saving drug and then increasing the price by 10.. not because of a profit problem (is profit enough) cost did not go up nothing.

Its like telling a dying man you will help him but the price has just gone up 10 times. Morally this is totally wrong and the US system lets this happen. So no bashing its criticism based on facts.

The problem is 100% state-granted monopolies by so-called copyrights, patents etc.; And as such, it has nothing to do with capitalism.

Without copyrights nobody would have to care what this Klein-Mensch Martin Shkreli did. The markets would and could take care completely by themselves and make sure that this drug and other goods would have the "correct" prices - I guess this drug would be even cheaper than before Shkreli played his lawful game. But before that, nobody asked or cared anyway.

It's the state with its "law makers" who are the enablers and enforce these prices on the buyers. Markets are distorted by such laws, not by capitalism.

For interested readers a link with more substance: http://www.stephankinsella.com/2010/10/how-intellectual-property-hampers-capitalism-transcript/

[Andaman Al]

US of A, you have made your bed, now lie in in it,

I get sick of the USA bashing on here.

Too bad your puny country can't invent the drugs and equipment and procedures the USA does, eh?

It is often the profit motive that drives these discoveries and then other "more civilized" but tiny, inconsequential yet incompetent countries leach off them.

(You asked for it.)

Cheers.

It might come as a surprise to you but there's plenty of puny countries out there punching well above their weight when it comes to inventing stuff, medical and otherwise.

Of course, that's not part of the 'pedalled' information fed to American citizens, so there's a mild excuse for your ignorance.

These puny countries are puny! the people have to live under oppressive rule-no incentive to show smarts!

Capitalism does work. I bet the iq of n koreans would rise if the leader would let them be free.

How funny, brain washing does work. So you think in America where in some states you can't grow tomatoes and sell them at your local farm market (you dont have those any more!) or drill a well on your own land for artesian water or you cant live anywhere in the world without paying tax back to the USA that you are not living under oppressive rule. The mind truly boggles. It is because most Americans cannot work this out that their freedoms will sink without a trace. They all think their Governments are doing what is best in the publics interests.

Capitalism and IQ is nothing to do with Freedom! You have Freedom in the USA with some of the poorest schooling and areas where such extreme poverty exist it belongs in a third world country. The system makes it easy for a man like Shkreli to take even more advantage of the poor. That said and done whatever the failings of the education system in the USA they sure do a good job of making you believe you live in utopia (by the way that is not a real geographical country )

[OMGImInPattaya]

It's just another show trial/hearing to illustrate to the good people that our government cares and is capable of

representing the interests of the people.

They throw Martin Shkreli to the wolves while our representatives protect and take contributions from BIG PHARMA

and the American people continue to pay outrageous prices for drugs.

Don't get me wrong, I'm not a fan of this guy, but the hypocrisy is just so in your face.

Agree completely...if these Republican clowns gave a wit about anyone's health or drug costs, why not repeal the prohibition on Medicare/caid from negotiating with drug companies for discounts on drugs for their enrollees...and why have they voted to repeal the Affordable Care Act, which would thrown millions of people back on the uninsured street or leave them to the tender mercies of unrestrained health insurance companies.

One has dificulty even contemplating the ego and hubris of these fools.

[lostboy]

US of A, you have made your bed, now lie in in it,

I get sick of the USA bashing on here.

Too bad your puny country can't invent the drugs and equipment and procedures the USA does, eh?

It is often the profit motive that drives these discoveries and then other "more civilized" but tiny, inconsequential yet incompetent countries leach off them.

(You asked for it.)

Cheers.

Not surprising that you support the ugly face of capitalism. Patent trolling and predatory pricing are outcomes of either market or regulatory failure. Yes, Pyrimethamine was discovered in America by a scientist working for a pharmaceutical corporation, Burroughs-Welcome but that corporation has since been bought out and the new owners sold the patent which was subsequently sold twice more ending up in the hands of Turing. The narrow base of consumers for the drug has not attracted either competition or makers of generic drugs to enter the market. The medical insurance system has further encouraged predatory pricing.

All of this does not take into account the humanitarian issues of people in need of the medication.

A simpleton may claim that the profit motive is the entirety of the capitalist system but most others understand that there are complexities involved. The idea that a leach like Shkreli can enter the financial system and exploit its loopholes by virtue of specialised knowledge to enrich himself and others while not actually producing anything is a disgrace. Yet you call citizens of other countries who benefit from medical discoveries in the US, leeches. Not all good things were discovered in the US and most certainly not all good things were discovered by corporate R&D. Many discoveries that have changed the world emerged from publicly funded research and academic institutions.

Individuals enriching themselves from flaws in the capital market, including information asymmetries is a necessary part of the system. Such people help discipline the markets and such flaws are dealt with by changes in market rules or actions by regulators. This is not such a case. It is pure exploitation. it is unfair, unjust and unethical. It is a direct outcome of the Republican fetish for unfettered deregulation and exposes the Republican ideology as economically bankrupt. Only in America.

[callaway]

It will wipe the smile off Shkreli's face when he is banged up for 20 years for securities fraud. Not that this incident with Congress will be subliminally stamped on the mind of the Judge who will be most inclined to deliver the maximum sentence

He will be "The worlds most eligible bachelor(ette)" when big Leroy calls him his wife.

Edited February 5, 2016 by callaway

[MyFriend You]

...it all comes down to whether he has been accepted in the club with 'the big boys' or not.......

...if he gets away with it....God Help those that require medication...and all health plans.....

Insurance companies have a way of getting around this - they will collectively role the drug too expensive to be used and not cover it on their insurance, if they won't cover it, then Medicare won't cover it either. The hospitals will just have to find another drug, maybe from India or Thailand - He'll get his sooner or later, IRS, Dept of Health, Civil Liberties Unions etc etc etc his companies will be sued up toe wazoo until he is finally bankrupt.

[Prbkk]

US of A, you have made your bed, now lie in in it,

I get sick of the USA bashing on here.

Too bad your puny country can't invent the drugs and equipment and procedures the USA does, eh?

It is often the profit motive that drives these discoveries and then other "more civilized" but tiny, inconsequential yet incompetent countries leach off them.

(You asked for it.)

Cheers.

He describes himself as an Albanian so by that measure the drug in question was developed by a Lithuanian. Per capita, the U.S. makes no greater contribution to medical science than 20 or 30 other countries, so you need to climb down off that high horse.