Biotech and Pharma

Bad-boy ex-pharma CEO Shkreli calls fraud charges 'baseless'

Martin Shkreli, CEO of Turing Pharmaceutical, is brought out of 26 Federal Plaza by law enforcement officials after being arrested for securities fraud on Dec. 17, 2015, in New York City.
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Bad-boy ex-pharmaceutical company CEO Martin Shkreli says fraud allegations against him are "baseless and without merit."

Shkreli tweeted Saturday: "I am confident I will prevail."

The 32-year-old former hedge fund manager pleaded not guilty Thursday in Brooklyn federal court and was released on $5 million bail.

Moments on Twitter: The Shkreli story

Shkreli was charged with securities fraud and conspiracy. Prosecutors say from 2009 to 2014, Shkreli lost some of his hedge fund investors' money through bad trades, then looted a pharmaceutical company where he was CEO for $11 million to pay back his disgruntled clients.

Shkreli was already widely reviled because a drug company he founded raised the price of a life-saving drug from $13.50 to $750 per pill. He resigned as the company's CEO on Friday.

Medical repercussions

Shkreli's arrest may have implications for the development of certain drug patents it holds. On Sunday, Moffitt Cancer Center released a statement saying it had suspended clinical trials of a drug held by KaloBios, another company run by Shkreli.

Moffitt "was among several participating sites of the clinical trial 'Study of KB003 in Previously Treated Patients With Chronic Myelomonocytic Leukemia (CMML)'funded by KaloBios," the center said in an emailed statement to CNBC.

"The biopharmaceutical company holds ownership of the clinical trial and KB003 drug. Moffitt has suspended this clinical trial indefinitely pending the outcome of the investigation of KaloBios' CEO, Martin Shkreli," it added.