U.S. congressional committee subpoenas ex-drug CEO Shkreli

Wed Jan 20, 2016 5:37pm EST
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Sarah N. Lynch and David Ingram

WASHINGTON/NEW YORK (Reuters) - A U.S. congressional committee has demanded that former drug executive Martin Shkreli appear at a hearing on drug prices to testify about his former company's decision to raise the price of a lifesaving medicine by more than 5,000 percent, congressional aides said on Wednesday.

Shkreli, who is separately facing federal criminal charges that he defrauded investors, has been served with a subpoena to appear on Jan. 26 before the U.S. House of Representatives' Committee on Oversight and Government Reform, the aides said.

The Senate's Special Committee on Aging, which is also investigating the company's drug pricing practices, said on Wednesday that Shkreli has invoked the U.S. Constitution's Fifth Amendment against self-incrimination, and has refused to produce subpoenaed documents.

Shkreli, 32, fired back at lawmakers on Twitter, writing on Wednesday that the House was "busy whining to healthcare reporters about me appearing for their chit chat next week. Haven't decided yet. Should I?" He declined an interview request.

The outspoken entrepreneur sparked a firestorm last year after he raised the price of Daraprim, a decades-old treatment for a dangerous parasitic infection, to $750 a pill from $13.50 after acquiring it. The medicine once sold for $1 a pill.

Shkreli pleaded not guilty last month to criminal charges that he ran his companies like a Ponzi scheme, using each subsequent company to pay off defrauded investors from a prior company.

After his arrest, he stepped down as chief executive of Turing Pharmaceuticals and was fired as chief executive of KaloBios Pharmaceuticals Inc. KaloBios also filed for Chapter 11 bankruptcy.

Shkreli's past companies also include Retrophin Inc, which sued him for alleged mismanagement.   Continued...

 
Martin Shkreli (C), chief executive officer of Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc, departs U.S. Federal Court after an arraignment following his being charged in a federal indictment filed in Brooklyn relating to his management of hedge fund MSMB Capital Management and biopharmaceutical company Retrophin Inc. in New York in this December 17, 2015, file photo. REUTERS/Lucas Jackson/Files