FBI arrests Turing Pharmaceuticals CEO

Martin Shkreli, a lightning rod for growing outrage over soaring prescription drug prices, was arrested by the FBI on Thursday after a federal investigation involving his former hedge fund and a pharmaceutical company he previously headed.

The securities fraud probe of Shkreli, who is now chief executive officer of Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc, stems from his time as manager of hedge fund MSMB Capital Management and CEO of biopharmaceutical company Retrophin Inc, a person familiar with the matter said.

Reuters witnessed the arrest at the Murray Hill Tower Apartments in midtown Manhattan. Law enforcement including Federal Bureau of Investigation agents could be seen escorting Shkreli, who was wearing a hoodie, into a car.

FBI spokeswoman Langmesser confirmed arrest.

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Shares of KaloBios fell 53 percent to $11.03 in premarket trading.

Lawyers for Retrophin and Shkreli did not immediately respond to a request for comment. Turing and KaloBios declined to comment.

A privately held startup, Turing sparked controversy earlier this year after news reports that it had raised the price of Daraprim, a 62-year-old treatment for a dangerous parasitic infection, to $750 a tablet from $13.50 after acquiring it. (RTRS)