Martin Shkreli, an Albanian American entrepreneur and hedge fund manager, rose to infamy as the “Pharma Bro.” Once boasting a net worth of $70 million, Shkreli’s fortune has dwindled to nothing following a series of legal battles and financial setbacks. His controversial actions in the pharmaceutical industry and subsequent conviction have made him a notorious figure in both finance and healthcare.
Rise to Infamy
Martin Shkreli earned public scorn in 2015 while running Turing Pharmaceuticals. The company acquired the rights to Daraprim, a life-saving HIV treatment drug. Prior to Turing’s acquisition, Daraprim was accessible and affordable, costing $13.50 per pill. Shkreli raised the price to $750 per pill, a move that sparked outrage and earned him the nickname “Pharma Bro.”
Legal Troubles
In 2017, Shkreli faced charges unrelated to the Daraprim scandal. He was convicted on two counts of securities fraud and one count of conspiracy to commit securities fraud. Shkreli was sentenced to seven years in federal prison in March 2018. During his trial, a judge ordered him to forfeit $7.3 million in assets, including a Pablo Picasso painting and an unreleased Wu-Tang Clan album.
Financial Downfall
At his peak, Shkreli’s net worth was estimated at $70 million, largely derived from his stake in Turing Pharmaceuticals. However, after his legal troubles and the seizure of his assets, Shkreli’s net worth plummeted to $0. In January 2022, he was banned from the pharmaceutical industry for life and ordered to return $64.6 million in profits from the Daraprim price hike.
Early Life and Education
Martin Shkreli was born on March 17, 1983, in Brooklyn, New York. Raised in a working-class family, Shkreli attended Hunter College High School but dropped out before his senior year. He completed his diploma at City-As-School High School and interned at Jim Cramer’s hedge fund at 17. Shkreli graduated from Baruch College in 2004 with a bachelor’s degree in business administration.
Career in Finance
Shkreli began his finance career at Cramer, Berkowitz, and Company, where he recommended short-selling Regeneron’s stock. Despite scrutiny from the SEC, no wrongdoing was found. Shkreli later worked as a financial analyst at large investment banks before founding Elea Capital Management in 2006. Elea faced a $2.3 million judgment from Lehman Brothers, but the bank’s collapse prevented collection.
In 2009, Shkreli launched MSMB Capital Management, focusing on short-selling biotech companies. His strategy included criticizing these companies in stock trading chat rooms. However, a failed short-selling bet wiped out MSMB Capital.
Turing Pharmaceuticals and Controversy
In 2011, Shkreli founded Retrophin, focusing on treatments for rare diseases. After being removed from Retrophin in 2014, Shkreli founded Turing Pharmaceuticals in 2015. The infamous Daraprim price hike brought him into the public eye, and despite public outrage, Shkreli defended the move and hired PR firms to manage the backlash.
Ongoing Legal Issues
Shkreli’s legal troubles extended beyond his securities fraud conviction. In 2019, the Bureau of Prisons investigated him for allegedly running his pharmaceutical company from prison using a cell phone. In 2020, New York Attorney General Letitia James filed a lawsuit against Shkreli for suppressing competition to maintain Daraprim’s high price. The lawsuit sought to ban him from the pharmaceutical industry for life and demanded monetary relief for victims.
Personal Life and Public Perception
Shkreli’s personal life has been marked by controversy. He paid $2 million for the Wu-Tang Clan album “Once Upon a Time in Shaolin” and listed it on eBay while in prison. The album was later seized as part of his asset forfeiture. Shkreli also made headlines for offering money to anyone who could obtain a strand of Hillary Clinton’s hair, leading to his bail revocation.
Conclusion
Martin Shkreli’s journey from a wealthy entrepreneur to a convicted felon is a cautionary tale of greed and unethical behavior in the pharmaceutical industry. Despite his early successes, his actions have left him with a tarnished reputation and a net worth of zero. Shkreli’s story serves as a reminder of the consequences of exploiting vulnerable populations for financial gain.
