Rights to Bankrupt ‘Pharma Bro’ Drug Sell for 1% of Past Value

The right to sell Daraprim, a prescription medication that “Pharma Bro” Martin Shkreli made infamous by jacking up its price in 2015, was approved for sale to a former company insider for less than $1 million.

Tilde Sciences LLC will purchase the rights to Daraprim, which treats the rare disease toxoplasmosis, for $650,000. Judge J. Kate Stickles approved the deal Wednesday during a hearing in the US Bankruptcy Court for the District of Delaware.

The sole member of Tilde, Akeel Mithani, was a senior vice president of business development at Vyera Pharmaceuticals LLC, which was founded by Shkreli. Mithani was also a board of director of another former Shkreli company, Phoenixus AG, according to court records.

In May, Phoenixus and several affiliates, including Vyera, filed Chapter 11. The bankruptcy came after increased competition from generic drugs and several lawsuits over the company’s allegedly anticompetitive conduct related to Daraprim’s pricing. A court-appointed receiver last August handed Shkreli’s shares over to independent directors.

Daraprim became infamous after then-CEO Shkreli raised its price from $17.60 per tablet to $750 in 2015, prompting public outrage. Vyera had bought the US licensing rights for the drug in 2015 for $55 million, and from 2016 to 2019 Daraprim brought in an estimated average net price between $228 and $305 per tablet.

The debtors grossed between $55 million and $74 million from 2016 to 2019, according to court records.

But revenues declined since 2019, falling to $10.1 million in 2022 as several generics came to market, according to court records. As of its bankruptcy filing, the debtors said they lost $1.9 million, according to court documents.

Tilde was chosen as the stalking horse bidder to buy the assets after the drug was marketed to more than 150 parties but received no better offers, according to court records. The sale Wednesday is roughly 1% of the $55 million sale price in 2015.

Vyera is represented by DLA Piper LLP (US).

The case is Vyera Pharmaceuticals LLC, Bankr. D. Del., No. 23-10605, hearing 9/13/23.