REPORT: Martin Shkreli will be replaced as CEO of his drug company

The Wall Street Journal’s Rob Copeland and Jonathan D. Rockoff report that Martin Shkreli will be replaced as CEO of Turing Pharmaceuticals, the drug company he founded earlier this year and through which he raised the price of life-saving drugs by hundreds of dollars.

Turing did not immediately respond to a request for comment. In a press release Thursday, the Switzerland-based company said, “The legal matters concerning the Founder and CEO Martin Shkreli are personal and have no bearing on Turing Pharmaceuticals. We maintain our deep commitment to patients, providers, and the progress of our important R&D pipeline.”

Shkreli, along with his lawyer, were arrested early Thursday on charges of securities fraud that were unrelated to his decisions to hike drug prices for life-saving drugs acquired by Turing. Shkreli has pleaded not guilty to the charges.

Shkreli is also CEO of another drug company, called KaloBios, which he acquired this fall. In a letter to the Food and Drug Administration, members of Congress cited the acquisition as a sign individuals like Shkreli were taking advantage of an FDA loophole to sell special vouchers that allow medicines to receive expedited approvals.

Efforts to reach a KaloBios rep for comment were unsuccessful.

Rob covers business, economics and the environment for Fusion. He previously worked at Business Insider. He grew up in Chicago.