Vyera Pharmaceuticals has been charged with a class action lawsuit due to allegedly monopolizing a drug’s market.
The class action lawsuit was filed against Vyera Pharmaceuticals and its owner by lead plaintiffs Blue Shield and Blue Cross in Manhattan federal court.
According to the case, Martin Shkreli, also known as “pharma bro,” conducted a scheme to gain a drug monopoly and raise its price to about 4,000 percent.
The plaintiffs argue that “pharma bro” and his company prevented their competitors from obtaining samples of the human immunodeficiency virus (HIV) drug Daraprin.
After gaining a monopoly, the company has increased its price from $17.50 to $750.
The lawsuit declares that Martin Shkreli acquired full rights to the Daraprin drug in 2015. Soon after, the company has stopped its competitors from getting samples of the drug.
Shkreli and his company concealed the scheme from the public. This allowed them to gain total control of the HIV drug, Daraprin.
The defendants have also denied allegations that they were trying to achieve the full monopoly of the drug.
The drug Daraprin is used to treat infection caused by HIV. The said infection can be lethal to immunocompromised patients.
Thus, patients are required to take medicine multiple times within weeks. In worse cases, patients need to take the drug continuously for months to heal them.
Since Daraprin is an essential drug for HIV patients, the company allegedly took advantage of the situation to hike its price up to 4,000% of the original price.
The class action lawsuit states that Martin Shkreli, Vyera Pharmaceuticals, parent company Phoenixus AG, and executive Kevin Mulleady have conspired to perform the monopoly scheme.
Blue Cross and Blue Shield assert that from the year Daraprin was acquired in 2015, Vyera Pharmaceuticals has possessed 100% of the drug’s rights, giving them full control for five years.
The defendants have also gained significant profit from hiking up the price of the drug.
Doctor Craig Samitt, CEO of Blue Cross and Blue Shield of Minnesota, argues that everyone should have equal access to the drug.
He complains that the medicine should not be monopolized by one company.
He also adds that drug companies should be responsible that medication is accessible and affordable for all those who need it.
Martin Shkreli Imprisonment
Martin Shkreli became infamous in 2015 when he increased the price of Daraprin after acquiring it. He is currently serving his prison sentence due to being accused of conducting a hedge fund scam.
He was convicted in 2017 with a seven-year sentence. Aside from the prison sentence, Shkreli was also obliged to do community service and undertake psychiatric treatment.
He is now imprisoned in Allenwood Low Federal Correctional Institution.
In 2020, he filed a request for early release due to fear of contracting the coronavirus.
A Brooklyn federal judge has denied this request since there are no active COVID-19 cases in the facility. His sentence is scheduled to end in September 2023.
Editor’s Note on Vyera Pharmaceuticals Class Action Lawsuit:
This article is published to inform you of the latest class action lawsuit filed against Vyera Pharmaceuticals due to allegedly monopolizing the market for the HIV drug Daraprin.
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