UPDATED: 4:30 PM EDT — The company has just now been granted a TRO! Next hearing against Savant occurs August 17, 2017 — to consider a preliminary injunction. Woot! [End, updated portion.]
We add to our coverage here, now — to thank PathoPhilia for doing what she does so well:
Connecting all the little dots, teasing out the tangled threads — and weaving these once disparate narratives — into a rich tapestry, of… Shkreli-led fraud(s). likely still ongoing.
Before we post hers, here — recall that Mr. Shkreli is only (by contract, at least) prohibited from acquiring control over any Humanigen/KaloBios shares for a one year period, and that period expired at the end of July 2017 (IIRC).
Now — we turn — to the able doctor’s keyboard [with my editorializing, in brackets]:
“…On reading the [over the weekend-filed] 30-page Humanigen/KaloBios TRO brief, I was struck by this little Easter-egg footnote on page 5:
“The Shkreli-Hurst partnership remained intact even after Shkreli was arrested at the end of 2015. In August 2016, Dorsey & Whitney (i.e., Savant’s law firm in this TRO dispute, as well!) issued a press release, announcing that Shkreli and Hurst had been invited to appear at a September 2016 symposium to discuss their efforts at forging a deal as to benznidazole. The press release stated: ‘Shkreli and Hurst will discuss how the KaloBios/Savant deal came together, their observations of KaloBios’ bankruptcy process and the impact of the public eye on pricing practices by life sciences companies….'” [Of course, that “symposium” appearance was ultimately scrubbed by the higher-ups, at D&W — but not before Mr. Shkreli sought and received permission from the court to attend.]
“In fact, Savant and its CEO, Stephen Hurst, previously partnered with Martin Shkreli to develop benznidazole even though Shkreli already was notorious for engaging in predatory pricing of other pharmaceuticals. Id. Were Savant and Hurst to sell to or partner with SOMEONE WITH A SIMILAR STRATEGY AGAIN, the results could be catastrophic for those suffering from Chagas [emphasis added].”
So at the very least, Humanigen/Kalobios is suggesting that Hurst and Shkreli are cut from the same predatory cloth. A more pernicious implication is that Hurst and Shkreli are still in communication, and that Savant wants to claw back its sole rights to benznidazole in an effort to partner with someone who’s perfectly willing to engage in extortion-style pricing.
Now who could that be? We certainly know that Shkreli can be extraordinarily and persistently vindictive in nature — e.g., the Pierotti harassment — and that he still has a majority stake in Turing and controls the board. It was Shkreli’s idea, after all, after his takeover of Kalobios, to initially partner with Savant and ultimately exploit the FDA approval of benznidazole….”
Indeed. And I think PathoPhilia is dead on. My take is that even if Turing DOES NOT move to partner with Savant, Judge Matsumoto will have a few things to say about all of this.
All of this is relevant conduct — a la the KaloBios bankruptcy — driven primarily by a Shkreli led securities fraud spree at that company. Lots of federal court pleadings to back up that assertion.
And in those securities suits on the West Coast, no one has agreed to release Mr. Shkreli, personally — all others have settled up, and paid their share. All but Martin Shkreli. That’s called “relevant conduct” evidence, under the federal sentencing guidelines, as we’ve discussed in comments, since the guilty verdicts, on Friday afternoon.
Now you know. Namaste, and thanks again to http://www.pathophilia.com!