Turing Pharma names chairman to replace Shkreli as CEO

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Turing Pharmaceuticals Close to Replacing CEO Martin Shkreli: Report

Martin Shkreli, the poster boy for prescription drug price increases who was arrested for securities fraud this week, has stepped down from his post as chief executive officer of Turing Pharmaceuticals Inc, the company said on Friday.

Shkreli was replaced by Turing Chairman Ron Tilles, who said in a statement that the company was committed to continuing to make its flagship drug, Daraprim, which is used to treat an infection called toxoplasmosis in AIDS patients.

SEE MORE: Turing CEO Martin Shkreli arrested in securities fraud probe

Shkreli has become a lightning rod for growing outrage over soaring prescription drug prices after the company acquired Daraprim and raised its price to $750 a tablet from $13.50.

Turing is the only manufacturer of Daraprim.

Shkreli has been under investigation for securities fraud related to hedge fund MSMB Capital Management and biopharmaceutical company Retrophin Inc. He was charged in Brooklyn, New York, on Thursday in a federal indictment.

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Turing Pharma names chairman to replace Shkreli as CEO
Pharmaceutical chief Martin Shkreli, right, huddles with his attorney Benjamin Brafman on Capitol Hill in Washington, Thursday, Feb. 4, 2016, following his appearance before the House Committee on Oversight and Reform Committee. Shkreli refused to testify before U.S. lawmakers who excoriated him over severe hikes for a drug sold by a company that he acquired. (AP Photo/Susan Walsh)
Benjamin Brafman, right, attorney for pharmaceutical chief Martin Shkreli, foreground, speaks on Capitol Hill in Washington, Thursday, Feb. 4, 2016, during a House Committee on Oversight and Reform Committee hearing on rising drug prices. Shkreli refused to testify before U.S. lawmakers who excoriated him over severe hikes for a drug sold by a company that he acquired. (AP Photo/Susan Walsh)
Pharmaceutical chief Martin Shkreli waits on Capitol Hill in Washington, Thursday, Feb. 4, 2016, for the start of the House Committee on Oversight and Reform Committee hearing on his former company's decision to raise the price of a lifesaving medicine. Shkreli refused to testify before U.S. lawmakers who excoriated him over severe hikes for a drug sold by a company that he acquired. (AP Photo/Susan Walsh)
Pharmaceutical chief Martin Shkreli waits on Capitol Hill in Washington, Thursday, Feb. 4, 2016, for the start of the House Committee on Oversight and Reform Committee hearing on his former company's decision to raise the price of a lifesaving medicine. Shkreli refused to testify before U.S. lawmakers who excoriated him over severe hikes for a drug sold by a company that he acquired. (AP Photo/Susan Walsh)
Former Turing Pharmaceuticals CEO Martin Shkreli, center, listens as his lawyer Benjamin Brafman, left, speaks to reporters as they leave court in New York, Wednesday, Feb. 3, 2016. Shkreli, who has become the poster child of pharmaceutical-industry greed after hiking the price of an anti-infection drug by more than 5,000 percent, is scheduled to appear at a congressional hearing on Thursday. (AP Photo/Seth Wenig)
Martin Shkreli, chief investment officer of MSMB Capital Management, sits for a photograph in his office in New York, U.S., on Wednesday, Aug. 10, 2011. MSMB made an unsolicited $378 million takeover bid for Amag Pharmaceuticals Inc. and said it will fire the drugmaker's top management if successful. Photographer: Paul Taggart/Bloomberg via Getty Images ***Local Caption ** Martin Shkreli
FILE - In this Thursday, Dec. 17, 2015, file photo, Martin Shkreli, center, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, is escorted by law enforcement agents in New York after being taken into custody following a securities probe. U.S. Rep. Elijah Cummings, D-Maryland, said a lawyer for Shkreli indicated he has not sought permission from a New York judge to appear at a congressional hearing Tuesday, Jan. 26, 2016, on drug prices, despite receiving a subpoena. (AP Photo/Craig Ruttle, File)
Martin Shkreli, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, is belted into an awaiting car after being taken into custody following a securities probe, on Thursday, Dec. 17, 2015 in New York. A seven-count indictment unsealed in Brooklyn federal court Thursday charged Shkreli with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. (AP Photo/Craig Ruttle)
Martin Shkreli, center, leaves the courthouse after his arraignment in New York, Thursday, Dec. 17, 2015. Shkreli, the former hedge fund manager vilified in nearly every corner of America for buying a pharmaceutical company and jacking up the price of a life-saving drug more than fiftyfold, was arrested Thursday on securities fraud charges unrelated to the furor. (AP Photo/Seth Wenig)
Martin Shkreli, chief investment officer of MSMB Capital Management, sits behind a chess board in New York, U.S., on Wednesday, Aug. 10, 2011. MSMB made an unsolicited $378 million takeover bid for Amag Pharmaceuticals Inc. and said it will fire the drugmaker's top management if successful. Photographer: Paul Taggart/Bloomberg via Getty Images ***Local Caption ** Martin Shkreli
Martin Shkreli, chief investment officer of MSMB Capital Management, works on a computer in his office in New York, U.S., on Wednesday, Aug. 10, 2011. MSMB made an unsolicited $378 million takeover bid for Amag Pharmaceuticals Inc. and said it will fire the drugmaker's top management if successful. Photographer: Paul Taggart/Bloomberg via Getty Images ***Local Caption ** Martin Shkreli
"THEY SEE ME ROLLING..." http://t.co/D1mDBEeZMq
Turing Pharma Puppy Party 2015 http://t.co/0xf1zKUYXy
Activists hold signs containing the image of Turing Pharmaceuticals CEO Martin Shkreli in front the building that houses Turing's offices, in New York, Thursday, Oct. 1, 2015, during a protest highlighting pharmaceutical drug pricing. Turing Pharmaceuticals sparked an angry backlash last month after it raised the price of Daraprim, the only approved treatment for a rare, life-threatening parasitic infection, by more than 5,000 percent. (AP Photo/Craig Ruttle)
FILE - In this Thursday, Oct. 1, 2015, file photo, carrying an image of Turing Pharmaceuticals CEO Martin Shkreli in a makeshift cat litter pan, AIDS activists and others are asked to leave the lobby of 1177 6th Ave. in New York, during a protest highlighting pharmaceutical drug pricing. A Senate committee tasked with protecting seniors launched an investigation Wednesday, Nov. 4, 2015, into drug price hikes by Turing, Valeant Pharmaceuticals, Retrophin Inc. and Rodelis Therapeutics, responding to public anxiety over rising prices for critical medicines. (AP Photo/Craig Ruttle, File)
Activists hold signs containing the image of Turing Pharmaceuticals CEO Martin Shkreli in front the building that houses Turing's offices, in New York, Thursday, Oct. 1, 2015, during a protest highlighting pharmaceutical drug pricing. Turing Pharmaceuticals sparked an angry backlash last month after it raised the price of Daraprim, the only approved treatment for a rare, life-threatening parasitic infection, by more than 5,000 percent. (AP Photo/Craig Ruttle)
Activists hold signs containing the image of Turing Pharmaceuticals CEO Martin Shkreli in front the building that houses Turing's offices, in New York, Thursday, Oct. 1, 2015, during a protest highlighting pharmaceutical drug pricing. Turing Pharmaceuticals sparked an angry backlash last month after it raised the price of Daraprim, the only approved treatment for a rare, life-threatening parasitic infection, by more than 5,000 percent. (AP Photo/Craig Ruttle)
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In October 2014, Shkreli was ousted from Retrophin, which he had founded. The drugmaker sued him for $65 million, saying he had breached his duty to the company.

In recent months, Shkreli has made controversial remarks in the press about raising drug prices and taunted detractors, including Democratic presidential candidate Bernie Sanders, on social media outlets.

Shkreli is also CEO of drugmaker KaloBios Pharmaceuticals Inc. KaloBios, which had planned to shut down operations, named him to that post on Nov. 20 after he and a consortium of investors bought about 70 percent of its outstanding shares.

Nasdaq has placed KaloBios' stock on a trading halt until the company provides more information.

On Thursday night, Shkreli, who was released on a $5 million bond earlier in the day, tweeted "Glad to be home. Thanks for the support."

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