toxoplasmosis, which is typically transmitted through under-cooked meat and infected cat feces.
The company raised the drug’s price nearly 4,000%, from $17.50 to $750 per tablet.
Daraprim is the only FDA-approved drug for treatment of toxoplasmosis.
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“Defendants knew, though, that this revenue boon could be short lived: Daraprim had no patent or regulatory protection and the massive price increase would attract competition from lower-priced generic products,” the lawsuit read. “To preserve the Daraprim revenue stream, Vyera and Phoenixus—under the direction of Shkreli and Mulleady—executed an elaborate, multi-part scheme to block generic entry.”
Phoenixus is the parent company of Vyera.
To prevent the creation of a generic version of the drug, the company reportedly had restrictive and exclusive contracts and locked up all resources of the active ingredient needed to make the drug.
The seven states and FTC are seeking a permanent injunction and monetary relief.
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They are also asking the courts to ban Shkreli and Mulleady from the pharmaceutical industry for life.
Shkreli was previously sentenced to seven years in federal prison for securities fraud.