Simon Black – The most hated man on the Internet was arrested yesterday.

If you haven’t heard this story, his name is Martin Shkreli. He’s the guy who rose to infamy a few months ago when he increased the price of a life-saving medication by over 5,000%.

Something tells me he’s not going to win any humanitarian awards anytime soon.

(Then again, Shkreli has probably killed fewer people than Nobel Peace Prize recipient Barack Obama, so there’s still hope.)

It started earlier this year when Shkreli , a former Wall Street stock analyst and hedge fund manager, launched his new company, Turing Pharmaceuticals.

His business plan for the company was simple: buy up the rights for drugs that treat rare diseases (known as ‘orphan drugs’) and hike the prices.

Orphan drugs typically have little competition. The diseases they treat are so rare that there’s not enough room in the marketplace for competition.

That de facto monopoly was an opportunity for Turing Pharmaceuticals to raise the prices and generate big profits.

The company made its first acquisition in August, buying the US rights to an orphan drug called Daraprim for $55 million.

(Cue the soothing voiceover: “Talk to your doctor to see if Daraprim is right for you…”)

The ink on the contract was still wet when Shkreli raised the price of Daraprim from $13.50 per pill to $750. And the outrage began almost immediately.

Presidential candidates from both sides chimed in, blasting Shkreli’s complete lack of sensitivity.

They may be right. He’s probably not a sensitive guy. Continue reading →