The drug company previously headed by Martin Shkreli was sued Monday for allegedly breaching a contract that let it sell Daraprim, the medication whose price the company marked up 5,000%, sparking nationwide criticism.
New York City-based Turing Pharmaceutical sneglected to provide and certify accurate pricing data for the drug and failed to assume responsibility for Medicaid rebate liability linked to the medication's sales, the federal lawsuit filed in New York by Impax Laboratories (IPXL) charged.
Impax, a California company that sold its Daraprim sale rights to Turing in August, also charged that Turing violated the agreement that it would "use best efforts not to do any act (that) endangers, destroys or similarly affects the value of the goodwill" of Impax's corporate name and trademarks.
Turing did not immediately respond to a message seeking comment on the allegations.
Daraprim is a medication used to treat toxoplasmosis, a potentially life-threatening parasitic illness that afflicts those with AIDS, cancer or other conditions that weaken the immune system. Turing's 2015 price hike on the decades-old drug last year under Shkreli's leadership raised the per-pill cost from $13.50 to $750.