The Denouement, On Shkreli: We Should Expect That The BC/BS Suit Will Now Kick Into High Gear, In Manhattan...

Even as the FTC readies its trial exhibits, as against Martin Shkreli as a solo act (starting next week in Manhattan federal district court), we would expect that the insurers' similar suit, for money damages, for overpaying for Daraprim^® all these years. . . will move forward -- and, briskly now. [As the revised masthead at our other property intones, his Phoenixus AG shareholdings have been largely-gutted of their earning power for ten years -- by the FTC settlement, last night. They are worth almost nothing now, as a cash-flow stream. As Maureen McGovern long ago sang (how's this, for "a blast from the past"?! -- there's "got to be a morning, after"; and this. . is it. Heh.)]

For certain, the BC/BS suit will also be a winner. The question though will be. . . what do the corporate defendants "have left" to offer, after agreeing to transfer up to $40 million to the FTC? Likely those companies' sales of a generic Ketamine version, at Vyera/Phoenixus AG will not be enough of a cash cow to allow BC/BS get another $40 million or so. But the insurer should certainly record a judgment, "just in case" the companies make (or find!) additional funds, overseas.

And to be clear, Dr. Koestler, as the holder of a perhaps nearly $5 million (when one includes the ever increasing interest payment portion) of a now-being-executed judgment from 2016, is first in line to collect, if/when Martin Shkreli sees liquid proceeds in any account. Next in line will be the soon-arriving claims for attorneys' fees and costs in the now settled FTC matter.

And soon, the BC/BS costs and attorneys' fees will be added to that tab -- as will the direct awards, against him, once we have a judgment amount from the trial starting next week in the FTC matter, in Manhattan. It will be a sharks' feeding frenzy, indeed.

In sum, Martin will in all likelihood leave prison (whenever he does) -- with probably under $5,000 to his name (just as we've long predicted). And a life-time ban against working in pharma, or life sciences in the US. And a ban against any securities related employment, and a ban. . . on being a director or officer of any public company. [Which, I suppose. . . leaves a role. . . in some future crypto-company. . . open.]

Now you know -- and all of it could have been avoided, had any number of people just told him "no" -- firmly, so long ago. . . .

So it goes -- off into the sunshine, grinning... prepping for a month near the White Tank range, in the much sunnier central deserts of Arizona. . . .

नमस्ते