Martin Shkreli, the medical industry entrepreneur reviled for ordering drug price hikes, resigned Friday as CEO of Turing Pharmaceuticals, one day after federal authorities charged him in an unrelated securities fraud scheme.
The privately held company announced that Ron Tilles, the chairman of the privately-held biopharmaceutical company, will serve as interim CEO while retaining his current position.
“We wish to thank Martin for helping us build Turing Pharmaceuticals into the dynamic research focused company it is today, and wish him the best in his future endeavors, Tilles said in a statement issued with the announcement. “At the same time, I am very excited about the opportunity to guide Turing Pharmaceuticals forward.”
Federal prosecutors accused Shkreli of perpetuating a Ponzi scheme on investors in his former hedge funds he led, as well as at Retrophin, another pharmaceutical company he founded and previously headed. Authorities said Shkreli misappropriated funds, lied about investment returns and conspired to defraud Retrophin by issuing company stock to settle personal disputes.
Shkreli, who pleaded not-guilty, denied the accusations.
The charges were not connected to a controversy that erupted earlier this year at Turing when he raised the price of a medication called Daraprim by more than 5000% — from $ 13.50 a pill to $ 750.
The therapy treats toxoplasmosis, a parasitic disease that afflicts people with weakened immune systems, such as individuals suffering from AIDS and pregnant women.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
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