Notorious Pharma CEO Martin Shkreli Arrested

Notorious Pharma CEO Martin Shkreli Arrested

( 4UMF NEWS ) Notorious Pharma CEO Martin Shkreli Arrested:

Martin Shkreli, the pharmaceutical company CEO who sparked outrage after raising the price of an anti-infective drug from $13.50 to $750, has been arrested by the FBI in New York City in an investigation related to a hedge fund and drug company he once ran, law enforcement sources confirm to NBC 4 New York.

Shkreli, 32, the head of Turing Pharmaceutical in New York, was previously the manager of hedge fund MSMB Capital Management and chief executive of biopharmaceutical company Retrophin Inc.

On Thursday, he was cuffed by federal agents after he and Retrophin lawyer Evan Greebel were indicted on securities fraud charges.

Authorities are expected to release details on the case later Thursday.

Attorney information for Shkreli and Greebel wasn't immediately available. The Associated Press reported that calls to an attorney who has previously represented Shkreli were not immediately returned.

Shkreli stirred public outrage earlier this fall when his company, Turing Pharmaceuticals jacked the price of Daraprim, a drug used to treat a life-threatening infection, by more than 5,000 percent. The drug, which has a patent that expired decades ago, is the only approved treatment for a rare parasitic infection called toxoplasmosis that mainly strikes pregnant women, cancer patients and AIDS patients.

Shkreli said the company would cut the drug's price. Last month, however, Turing reneged on its pledge. Instead, the company is reducing what it charges hospitals for Daraprim by as much as 50 percent. Most patients' copayments will be capped at $10 or less a month. But insurance companies will be stuck with the bulk of the tab, potentially driving up future treatment and insurance costs.

Turing, with offices in New York and Switzerland, bought U.S. rights to sell Daraprim in August, when it had no competition. Daraprim is one of numerous old drugs with limited competition whose makers have raised prices sharply.

Shkreli recently made headlines after it was revealed that he was the mystery buyer of the new single-copy Wu-Tang Clan album "Once Upon a Time in Shaolin." He reportedly paid $2 million as the highest bidder for the exclusive album and told Bloomberg Business he was waiting to listen to it "for a rainy day."