Shkreli’s Pharma Company Files for Bankruptcy After Lawsuits

Phoenixus AG, a pharmaceutical company founded by Martin Shkreli, has filed for bankruptcy after being bruised by lawsuits and pummeled by competition from generic drugs.

The company and a handful of corporate affiliates including Vyera Pharmaceuticals filed Chapter 11 in Delaware on May 9. The action was taken by independent directors who were brought in last August by a court-appointed receiver who took control of Shkreli’s shares.

Martin Shkreli

Photographer: Peter Foley/Bloomberg

The drugmaker, formerly known as Turing Pharmaceuticals AG, said it will use Chapter 11 to restructure one subsidiary developing a new drug. It will also run a sale process for ...