While we were all distracted by the recent news of disgraced former pharma CEO Martin Shkreli, it was actually the inventor of the world’s most popular ED drug who was named in an indictment. Shkreli is accused of conspiring to defraud his former company and mislead investors about the price of a life-saving medication. The indictment includes charges of stock fraud, making false statements to investors, and using his position to solicit investors. Now that the dust has settled, it’s time to see how much money poor Martin actually made from his invention. Let’s take a look at his net worth as of December 31, 2016.
How Much Cash Has Martin Shkreli Invented?
While Shkreli has made quite a bit of money since the success of his drug, his earnings are merely the spark that ignited a blaze of fire selling his patented invention for a considerable sum. In fact, Shkreli sold his company, Turing Pharmaceuticals, for a whopping $90 million. Since then, he has spent lavishly buying expensive cars, mansions, and a private island. But all of that was just the spark that started a fire. The real money came from his invention, a drug called “Viagra” which stands for “very affordable erectile dysfunction”, a name that will forever be attached to his invention. When asked about the price of his drug, he would typically reply, “It’s too high. They won’t pay it.” Shkreli is accused of defrauding his company of $11.6 million by, among other things, inflating the prices of some of his medicines. He is also accused of misleading his investors about the cost of developing and selling his drug. According to court documents, he told one investor that he could get the drug to market quickly and at a low cost if the investor gave him $5 million. To seal the deal, he allegedly showed the potential investor a contract that stated he would get $5 million back if the drug failed to reach market. During the same call, Shkreli allegedly said that he was “poised to get [his drug] approved by the FDA” and would give the investor another $10 million “if the drug passed all of [its] tests”. The FDA never approved Shkreli’s drug for the treatment of erectile dysfunction, but it has been extremely successful in raising prices for those who use it. The price of a 50mg tablet rose from $1.13 in 2012 to $32.60 in 2016, a 488% increase. In the year before his indictment, Shkreli was reportedly worth $20 million. Just two months after the indictment, he was reportedly worth $40 million. He likely had a significant amount of cash on hand when he was named in the indictment. Although Forbes has yet to publish an updated estimate of Shkreli’s net worth following his arrest, his former company reported that he had a personal fortune of $15 million. As of this writing, the indictment against Martin Shkreli has not been dismissed and he is currently being held without bail while he awaits trial.
What Is Viagra?
While Shkreli was raking it in, so too was the company he founded which sold the drug he invented. The drug, known formally as Sildenafil Citrate or simply “Viagra”, was first approved by the FDA in 1998 and is the world’s most popular ED pill. Each year, more than 12 million Americans are diagnosed with erectile dysfunction and about half of them take advantage of the treatment options available. Viagra is a PDE-5 inhibitor which works by helping to maintain an erection by relaxing the muscles in the penis. Men with erectile dysfunction often suffer from impotence, the inability to achieve or maintain an erection, which can be a major blow to their self-esteem. It is estimated that about 27 million American men have been affected to some degree by erectile dysfunction. While there are multiple treatments available to help with erectile dysfunction, many people turn to ED medication because it’s quite effective and has a pleasing side effect profile. According to the American Urological Association, “approximately 90% of men who take PDE-5 inhibitors experience at least some improvement in their erectile dysfunction”.
The Rise Of Viagra
It’s been a good week for Martin Shkreli, but his success is no fluke. He was able to cash in on the success of his drug even though the FDA never approved it for the treatment of erectile dysfunction. In fact, the drug was originally approved for a completely different purpose: to treat pulmonary hypertension, a condition that leads to increased blood pressure in the lungs. The agency only approved Sildenafil for use in treating erectile dysfunction in response to an inquiry from Shkreli, who was seeking a faster route to market. FDA records show that in September 1998, Shkreli emailed the agency to request an expedited review of the drug application he filed in March 1998. A month later, in October 1998, the agency approved Shkreli’s application and he began selling his drug in November of that year. It wasn’t long before Americans were flocking to their drugstore to pick up a dose of Viagra. The drug has since become ubiquitous and is now available almost anywhere a pharmacy is located.
How Effective Is Viagra?
According to the American Urological Association, approximately 80% of men who take Viagra experience at least some improvement in their erectile dysfunction. That’s pretty high considering that only about 30% of men reported being “very satisfied” with their sex life before taking the drug and about 70% reported being “somewhat satisfied”. The association also points out that for those men who do experience improvement, it is usually quick and noticeable. But for some, the effects may be subtle and require some tweaking by the patient. ED medication isn’t for everyone, but for those who want to try it, it can be an incredible option. About 4.7 million American men have tried it and as of 2016, it is the most popular ED treatment option with about 27 million American men having used it at least once. One significant drawback to Viagra is that it works best when taken 30 minutes to one hour before sexual activity. This is in contrast to other ED treatments which are generally administered as part of a routine daily regimen. Some men have complained about getting a headache from taking Viagra, especially if they take it too frequently. Since the drug was approved in 1998, numerous side effects have been associated with it including headaches, muscle aches, heart palpitations, and allergic reactions. While these are all very rare, they are all potentially life-threatening. Because of the risks, many insurance providers won’t cover the cost of Viagra. In fact, the WHO recently included the drug in its “List of Essential Medicines”, a category reserved for medications which are “totally or largely effective and safe”. If you’re looking for a treatment option, Viagra is certainly on the list. But if you have insurance, you may want to think about trying another drug. There are various treatment options for erectile dysfunction, but Viagra is the most popular one because it’s so effective and relatively safe.