House Subpoenas Former Pharmaceutical Exec Accused Of Price Gouging

Former pharmaceutical CEO Martin Shkreli could face questioning from a congressional panel next week.

The House Committee on Oversight and Government Reform issued a subpoena to Shkreli to appear at a hearing on Jan. 26, according to multiple reports.

Shkreli was arrested last month on charges of securities fraud and wire fraud stemming from his work as a hedge fund manager and head of biopharmaceutical company Retrophin.

But he rose to national prominence in September when, as head of Turing Pharmaceuticals, he raised the price of a decades-old infection treatment from $13.50 to $750 per pill and drew allegations of price gouging from critics.

The hearing will focus on pricing practices in the pharmaceutical industry. Current Turing officials and executives from Valeant Pharmaceuticals — also under fire for sharply increasing drug prices — are also slated to appear at the hearing.

Rep. Elijah Cummings, the ranking Democrat on the committee, said that he has attempted to get information from Shkreli "for the better part of a year."

"He claims publicly that he wants to explain to Congress how drug pricing works," said Cummings, of Maryland. "On Tuesday, he will get his chance."

Shkreli, who stepped down from Turing following his arrest, has pleaded not guilty and was released on $5 million bail. It’s unclear whether he will appear at Tuesday’s hearing.