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Pharma Bro declares pharma no-no

Martin Shkreli is shorting a pharmaceutical company, and people are listening to him for some reason.

Pharma Bro Martin Shkreli

Adam Gray/Getty Images

less than 3 min read

There are people out there giving bad investing advice—and then there are those who keep proselytizing even after being convicted of securities fraud.

Martin Shkreli, the infamous executive who made a name for himself by raising the price of a life-saving medication by 5,000%, has been touting a bunch of bets against pharmaceutical companies on X. Even stranger, his track record is actually…pretty good so far?

Shkreli’s short-selling stats

While Shkreli’s drug-pricing antics spurred a ton of headlines and hate for him, that incident is not what got him convicted of securities fraud. That little hiccup had to do with manipulating the stock of his pharma company Retrophin and defrauding investors.

Apparently, his experience at the helm of a pharmaceutical company has given him some insight into spotting fellow pharma frauds. Back in November 2024, Shkreli announced he was shorting Cassava Sciences, arguing that he doesn’t think the company’s Alzheimer’s treatment works. Its stock has fallen 24% this year.

He also shorted INmune Bio at the end of June, again noting that its hit drug “basically doesn’t work.” Shares immediately plunged 56% the next trading day, and remain down 21.34% over the last month.

More recently, at the end of July he announced he was shorting aTyr Pharma. He warned that the company had “some of the worst data I've ever seen,” and said shares will fall 80% in the next four to six weeks. The stock has dropped 78% over the past month.

Let’s be very clear: None of that means you should take your investment advice from the Pharma Bro. It’s more likely that, in a world of meme stocks and internet cache, Shkreli has garnered enough of an investor following that retail traders are backing up his calls with big money, making his predictions a reality.

Then again, the former pharma exec also dropped another piece of news today on X: He’s shorting meme stock Opendoor. Shkreli isn’t the only one worried about OpenDoor’s valuation—for once, the majority of analysts actually agree with him.LB

Making sense of market moves

Stay up to date on the latest market news with daily analysis of the investing landscape, served up Brew-style.

Making sense of market moves

Stay up to date on the latest market news with daily analysis of the investing landscape, served up Brew-style.