Battle brews for Martin Shkreli’s controlling stake in Phoenixus

Martin Shkreli could also lose his grip on the pharmaceutical company he controls from prison.

Three days after the “Pharma Bro” defeated a group of shareholders who were trying to take over the management of his company Phoenixus by ousting his buddies from the board of directors, further efforts had been made to relieve him of his loss. 44% controlling stake in the pharmaceutical company, which he used to win the battle by proxy.

On Thursday, a person to whom Shkreli owed hundreds of thousands of dollars asked the Manhattan federal government to quickly appoint a receiver to liquidate Shkreli’s stake in Phoenixus.

Dr Thomas Koestler – to whom a decision dominated in February 2017 owed $ 2.6 million in consulting companies he offered to another of Shkreli’s pharmaceutical companies, Retrophin – even cited Shkreli’s victory on Monday against a pair of activist buyers in search of the Phoenixus ouster. current board of directors.

“We note that time is running out and there is no reason to delay any further,” he said. “It stands to reason that Mr. Shkreli remains active in this endeavor.”

A photo of Martin Shkreli in the rain.
Martin Shkreli seems to be leaving the prison of the management of the pharmaceutical company he controls.

On Monday, Kevin Mulleady, former confidant of Shkreli and governor of Vyera, along with Jason Aryeh, a longtime activist investor in the pharmaceutical business, held a special meeting to ask Phoenixus shareholders to swap the current board of directors. , who they say are friends of Shkreli.

Mulleady and Aryeh came up with a list of six new directors who they believe would help topple the company and put an end to Shkreli’s impact. But their candidates all lost more than 70%, with Shkreli voting his 44% stake in prison.

Although the “Pharma Bro” was technically compelled to forgo shares by a federal decision from Brooklyn as part of its buyer scam punishment, it is nonetheless able to use the shares to vote on the issues of the market. company until they are reassigned.

On July 1, Manhattan Federal Judge Alison Nathan agreed to have the shares liquidated to repay money owed to Shkreli. But she only has to appoint a receivership to take management of the shares, worth an estimated $ 7.5 million.

Once the sale is completed, the title of the stock will change from Shkreli to the brand new owner, implying that Shkreli risks losing the ensuing proxy battle.

A portrait of Martin Shkreli's former confidant Kevin Mulleady
Kevin Mulleady must remove directors linked to Shkreli.

Whatever happens, Mulleady and Aryeh say they won’t be leaving anytime soon.
The duo say they are now trying to collect enough money to collectively make an aggressive bid for Shkreli’s participation.

They could also attempt to take over the management of the company by having another meeting to oust Shkreli’s board of directors while his stock is in limbo – or away from his management but not but bought by another person, have they declared.

When it comes to buying the shares, however, they fear that the company or its directors may provide an extra.

According to documents reviewed by The Post, anyone who can shell out cash is eligible to purchase them, even when closely related to Shkreli.

Aryeh and Mulleady, who say he was unfairly kicked off the Phoenixus board by Shkreli, want to extract Shkreli from the company, return the value of the Daraprim drug to the pre-Shkreli ranges, and throw out the Shkreli enablers.

Shkreli, 38, rose to fame in 2015 as CEO of Turing when he increased the value of the AIDS cure Daraprim from $ 13.50 to $ 750, a 5,000% improvement. He was then tried for defrauding hedge fund buyers, was convicted and sentenced to seven years in prison.

Daniel Alonso, who could become the receiver of Martin Shkreli's shares.
Daniel Alonso, who could become the receiver of Martin Shkreli’s shares.
Paul Morigi

Koestler has argued for Shkreli’s attorney, Brianne Murphy, having filed a motion seeking a 90-day extension that will delay the receiver’s appointment and liquidation.

She asked for the court role instead of appointing Buckley LLP’s companion and former state and federal prosecutor Daniel Alonso – who is probably best known for his comments on the Trump Organization on MSNBC – as receiver to promote the actions by Shkreli.

Alonso declined to comment, saying he “cannot discuss something under consideration by the court”.

Murphy did not respond to requests for comment.

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