U.S. lawmakers unlikely to get answers from ex-drug executive Shkreli

By David Ingram and Sarah N. Lynch
NEW YORK/WASHINGTON, Feb 4 (Reuters) - Martin Shkreli, the
former drug executive who raised the price of a lifesaving
medicine by 5,000 percent, is set to appear as a witness at a
congressional hearing on Thursday but is unlikely to answer
lawmakers' questions about price spikes.
Shkreli, 32, sparked outrage last year among patients,
medical societies and Democratic presidential front-runner
Hillary Clinton after his company Turing Pharmaceuticals raised
the price of 62-year-old Daraprim to $750 a pill from $13.50.
The medicine, used to treat a parasitic infection, once sold
for $1 a pill.
The U.S. House Committee on Oversight and Government Reform
is scheduled to hold a hearing on drug prices at 9 a.m. EST
(1400 GMT), with Shkreli and others from the pharmaceutical
industry as witnesses.
For weeks, Shkreli battled with lawmakers. He insisted that
if called to appear, he would invoke the Fifth Amendment right
against self-incrimination and remain silent. Lawmakers said his
testimony was essential to investigating why drug prices had
risen and that if he chose not to answer questions, he must do
so in person.
Shkreli's lawyer, Benjamin Brafman, repeated on Wednesday
that Shkreli would not answer questions. Speaking to reporters
after a court hearing, Brafman said the reason was the unrelated
criminal charges that Shkreli defrauded investors.
In December, Shkreli was arrested and charged with running
his investment funds and companies almost like a Ponzi scheme.
He has pleaded not guilty, stepped down from Turing and was
fired from KaloBios Pharmaceuticals Inc KBIOQ.PK . He is also a
former head of Retrophin Inc RTRX.O , which sued him, alleging
mismanagement.
The Federal Trade Commission and the New York attorney
general are investigating Turing for possible antitrust
violations.
Other expected witnesses on Thursday include Turing Chief
Commercial Officer Nancy Retzlaff and Valeant Pharmaceuticals (N:VRX)
VRX.TO interim Chief Executive Howard Schiller.
Retzlaff said in written testimony released by the committee
that Turing discounted the price of Daraprim to hospitals by 50
percent in November after consulting with patient groups. She
added that Turing reinvests much of its income in research and
had 13 projects in its pipeline as of December.
Schiller said in written testimony that Valeant has tried to
keep drugs affordable through volume-based rebates and a
partnership with Walgreens WBA.O .
He also wrote that patients were best served when prices
reflected the market: "When these drugs are priced to reflect
more closely their true clinical value, the more accurate price
signals incentivize generic competition and innovation."