Martin Shkreli reportedly sold out one of the most hated drug companies on Wall Street

Martin Shkreli talking to Maria Bartiromo on Fox Business Network.AP Photo/Richard Drew

Mallinckrodt Pharmaceuticals’ (MNK) stock fell by as much as 13% after the New York Post reported that the Federal Trade Commission (FTC) will file charges against the company for using its monopoly on a lupus andmultiple sclerosis drug, Acthar, to unfairly jack up its price.

Martin Shkreli (yes, you read that correctly, Martin Shkreli), who infamously engaged in the same pricing practice when he was running a small drug company apparently blew the whistle, according to the Post.

The Post reported that Shkreli filed suit against MNK back in 2014 for acquiring the drug Synacthen, from Novartis, and then shutting it down to protect a rival drug. The Feds have been investigating MNK ever since.

Shkreli was indicted on securities fraud charges unrelated to Turing in December 2015.

The stock recovered after the company said it has reached a settlement over the issue, which had been disclosed by the company earlier.

MNK has gotten plenty of negative attention on Wall Street in the past. Last year, short seller Andrew Left of Citron Research — who has said the company is more offensive than pariah Valeant Pharmaceuticals — challenged the company to prove that Acthar actually works by appearing on TV and offering $1 million to the National Multiple Sclerosis Society if MNK provided test results.

MNK company purchased Questcor, the company that makes Acthar, in 2014. Acthar is used to control muscle spasms in infants. Before MNK acquired the drug, Questcor had raised the price to $28,000 a vial, from $1,235 a vial in 2005.

Markets Insider