Martin Shkreli must return $64.6 million in profits he and his former company reaped from raising the price of the life-saving drug Daraprim, a US federal judge ruled on Friday, while also barring the provocative, jailed former chief executive from participating in the pharmaceutical industry for the rest of his life.
US District Judge Denise Cote's ruling came several weeks after a seven-day bench trial in December. The Federal Trade Commission and seven states brought the case in 2020 against the man called “Pharma Bro” in the media.
Shkreli was head of Turing Pharmaceuticals — later Vyera — when it jacked up the price of Daraprim from $13.50 to $750 per pill after obtaining exclusive rights to the decades-old drug in 2015. It treats a rare parasitic disease that strikes pregnant women as well as cancer and Aids patients.
He rationalised the decision as capitalism at work and said insurance and other programmes ensured that people who need Daraprim would ultimately receive it.
But the move sparked outrage in medical centres and the US Congress, and even made its way up to the 2016 presidential campaign trail, when Hillary Clinton termed it price-gouging and then future president Donald Trump called Shkreli “a spoiled brat".
Shkreli eventually offered hospitals half off — still amounting to a 2,500 per cent increase. But patients normally take most of the weeks-long treatment after returning home, so they and their insurers still faced the $750-a-pill price.
He resigned as Turing's chief executive in 2015, a day after he was arrested on securities fraud charges related to hedge funds he ran before entering the pharmaceuticals industry. He was convicted and currently serving a seven-year prison sentence.
Vyera was sued in federal court in New York by the FTC and the states of New York, California, Illinois, North Carolina, Ohio, Pennsylvania and Virginia.
They alleged that Vyera increased the price of Daraprim and illegally created “a web of anticompetitive restrictions” to prevent other companies from creating cheaper generic versions by, among other things, blocking their access to a key ingredient for the medication and to data the companies would need to evaluate the drug’s market potential.
Vyera and its parent company, Phoenixus AG, settled last month, agreeing to provide up to $40m in relief over 10 years to consumers and to make Daraprim available to any potential generic competitor at the cost of producing the drug.
Former Vyera chief executive Kevin Mulleady agreed to pay $250,000 if he violates the settlement, which also barred him from working for a pharmaceutical company for seven years.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
