A well-known biotech investor testified Thursday that "pharma bro" Martin Shkreli never told him about a disastrous short trade in February 2011 that allegedly left Shkreli's hedge fund tapped out of its assets.
The investor, Dr. Lindsay Rosenwald, said Shkreli sent him an email saying that his original $100,000 investment in MSMB Capital fund had grown to $131,000 by February 2011.
However, an earlier witness testified in Brooklyn, New York, federal court, that same month Shkreli's fund was unable to cover an 11 million share short position in Orexigen Therapeutics.
Shkreli ended up owing Merrill Lynch $7 million because that firm had processed the short sale for MSMB Capital, that witness had said at Shkreli's securities fraud trial.
Merrill Lynch later settled that claim in arbitration for about $1 million.
A prosecutor asked Rosenwald on Thursday if he ever heard about the "trade in OREX."