BCBS of Minnesota settles with former Martin Shkreli-led Vyera Pharmaceuticals

Blue Cross and Blue Shield of Minnesota announced a tentative $28 million settlement with Vyera Pharmaceuticals and parent company Phoenixus AG following a lawsuit that accused the companies of monopolizing the Daraprim drug market. 

The settlement also applies to former executives Martin Shkreli and Kevin Mulleady, who led the companies as they attempted to upcharge the toxoplasmosis treatment 4,000 percent while simultaneously attempting to stifle generic competition, according to a Blue Cross and Blue Shield of Minnesota news release. 

The settlement proposes the companies cease alleged anticompetitive behavior and pay out $28 million to a class of payers that purchased Daraprim. Pending judge approval, it also reemphasizes a court-ordered ban on Mr. Shkreli from working in the pharmaceutical industry. 

"Blue Cross and Blue Shield of Minnesota believes that drug companies need to be held accountable for the uncontrollable rise of prescription drug costs," said Dana Erickson, president and CEO of Blue Cross and Blue Shield of Minnesota. "We look forward to finalizing this settlement in the courts so that funds may be distributed appropriately to impacted members of the class."

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