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Martin Shkreli quits Turing Pharmaceuticals after arrest | Martin Shkreli quits Turing Pharmaceuticals after arrest |
(35 minutes later) | |
Martin Shkreli has resigned as chief executive of Turing Pharmaceuticals following his arrest on Thursday. | Martin Shkreli has resigned as chief executive of Turing Pharmaceuticals following his arrest on Thursday. |
Ron Tilles will become interim chief executive after Mr Shkreli was accused of securities fraud in relation to a drug company and a hedge fund he managed. | |
Mr Shkreli, 32, was accused of running a Ponzi scheme at his former company. | |
Turing and Mr Shkreli became infamous in the US for raising the price of an HIV drug by 5,000% earlier this year. | Turing and Mr Shkreli became infamous in the US for raising the price of an HIV drug by 5,000% earlier this year. |
His arrest was unrelated to this price rise. | His arrest was unrelated to this price rise. |
US prosecutors said on Thursday that "Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit". | US prosecutors said on Thursday that "Shkreli engaged in multiple schemes to ensnare investors through a web of lies and deceit". |
The FBI has accused Mr Shkreli of running a Ponzi scheme, in which assets from his former company, Retrophin, were illegally used to pay off debts at MSMB, the hedge fund he managed. | The FBI has accused Mr Shkreli of running a Ponzi scheme, in which assets from his former company, Retrophin, were illegally used to pay off debts at MSMB, the hedge fund he managed. |
The US Securities and Exchange Commission also charged him with defrauding investors in MSMB to conceal poor investment choices. | The US Securities and Exchange Commission also charged him with defrauding investors in MSMB to conceal poor investment choices. |
The SEC also accused Mr Shkreli of taking money from the hedge fund to use for personal expenses. | The SEC also accused Mr Shkreli of taking money from the hedge fund to use for personal expenses. |
Mr Shkreli denied the charges in court and was released on bail of $5m. | |
New management | New management |
Mr Tilles has been chairman of Turing since the company was founded last year. | |
He thanked Mr Shkreli for helping to make Turing the "dynamic, research-focused company it is today and wish him the best in his future endeavours". | |
Mr Tilles has worked with private equity and venture capital firms in the pharmaceutical and medical device industry for the past 20 years. | Mr Tilles has worked with private equity and venture capital firms in the pharmaceutical and medical device industry for the past 20 years. |
Turing and Mr Shkreli drew criticism in September when the company raised the price of an HIV drug called Daraprim from $13.50 to $750 per pill - a 5,000% increase. | |
Mr Shkreli was lambasted for the decision, but accused the public and politicians of not understanding the industry. | |
Affordable | |
He later said the company would lower the price. However, Turing kept the price of Daraprim the same, offering discounts to hospital and financial aid for some customers. | |
On Friday Mr Tilles vowed to make the drug affordable: "We remain committed to ensuring that all patients have ready and affordable access to Daraprim." | |
Turing paid $55m for the rights to sell the drug in the US. | |
Mr Shkreli recently became chief executive of another company, San Francisco-based KaloBios Pharmaceuticals. It was unclear whether he would retain that position. |