Turing countered that Impax had provided the national health agency that calculated the rebates, and was required to submit information with information. Ramos rejected that argument, although Impax said it had no obligation to do that under the contract.
Shkreli’s lawyer said that Shkreli still possessed a significant share of Turing value between $30 and $50 million.
The Wall Street Journal reported last week that Impax was in discussions to merge with privately held Amneal Pharmaceuticals LLC, citing unnamed sources.
Drug companies must agree to pay such rebates, which can be calculated using a formula that depends in part on the manufacturer’s price, in order to be eligible for Medicaid coverage.
U.S. District Judge Edgardo Ramos in Manhattan stated Vyera was liable for the cash under its contract with Impax, but did not have to pay it because Impax had violated the contract too.
The former executive was convicted of securities fraud in August. After he placed a $ 5,000 bounty Hillary Clinton’s hair, prompting a judge to reverse his 30, he was detained earlier this month.
Impax and Vyera did not respond to requests for comment.
Released at Sat, 30 Sep 2017 00:39:37 +0000
To Turing in August 2015, Impax sold an anti-infection medication often utilized in AIDS patients, Daraprim. Turing, under Shkreli’s leadership, immediately raised its price to $750 per pill, from $13.50, sparking outrage among patients and U.S. lawmakers.
NEW YORK (Reuters) – Vyera Pharmaceuticals, formerly called Turing Pharmaceuticals, does not need to pay Impax Laboratories Inc $43 million in a dispute stemming from Turing creator Martin Shkreli’s decision to boost by 5,000 percent the purchase price of a drug Turing purchased from Impax, a U.S. judge ruled on Friday.
Impax sued Turing in May 2016, claiming that as a result of the purchase price growth Medicaid agencies had demanded tens of millions of dollars in rebates for Daraprim pills that had Impax. It said Turing was liable for those rebates.
Reporting From Brendan Pierson in New York; Editing by David Gregorio
Shkreli stepped down as Turing’s chief executive officer in December 2015 after he had been charged with defrauding investors in two hedge funds he ran.