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Former Shkreli-Led Drug Developer Pledges Responsible Pricing

April 11, 2016, 1:33 PM UTC
House Oversight Hearing On Prescription Drug Price Increases
Martin Shkreli, former chief executive officer of Turing Pharmaceuticals LLC
Pete Marovich/Bloomberg via Getty Images

A biotechnology company, which was led by former drug executive Martin Shkreli, said on Monday it was making a commitment not to engage in aggressive pricing, and to develop a ‘transparent and responsible’ model for its products.

KaloBios Pharmaceuticals (KBIO), which fired chief executive Shkreli last December following his arrest on charges of securities fraud, filed for Chapter 11 bankruptcy later that month.

KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought about 70 percent of its shares.

Shkreli became the poster child for price gouging when he raised the price of a drug used to treat a dangerous parasitic infection overnight to $750 a tablet from $13.50 when at the helm of Turing Pharmaceuticals.

On Monday, KaloBios said it intended to price its products at overall cost, plus a ‘reasonable and transparent’ profit margin, if and when they are ready for marketing. (Reporting by Natalie Grover in Bengaluru; Editing by Shounak Dasgupta)