Released From Jail, Shkreli Plans Crypto-Backed 'Web3 Drug Discovery' Platform

Martin Shkreli photographed for his role as CIO of MSMB Capital Management. Getty Images

Martin Shkreli, the notorious former pharmaceutical executive fresh out of prison after his 2017 fraud conviction, announced his latest startling endeavor on Monday: creating a "Web3 medicines” based on the blockchain that processes its own cryptocurrency, MSI, aka Martin Shkreli Inu.

The platform, still in early development, is called Druglike, according to a press release circulating on Monday. The platform's goals are seemingly ambitious, but the details are extremely sketchy and Shkreli's intentions have already sparked skepticism. It's also unclear if the company will breach Shkreli's lifetime ban from pharma, which stems from the brutal and ruthless 4,000% price hike of a life-saving drug that sadly made him famous.

Shkreli, who is named co-founder of Druglike, says the platform aims to make early-stage drug discovery more affordable and accessible. "Druglike will remove barriers to early-stage drug discovery, increase innovation, and allow a wider group of contributors to share the rewards," Shkreli said in the press release. "Underserved and underresourced communities, such as those focused on rare diseases or in developing markets, will also benefit from access to these tools."

Generally, early-stage drug development can sometimes involve virtual screens to identify potential drug candidates. In these cases, pharmaceutical scientists first identify a "target" - a specific compound or protein that plays a critical role in the development of a disease or condition. Then researchers look for compounds or small molecules that might interfere with that target, sometimes binding or "attaching" directly to the target in a way that stops it working. This can be done in physical labs using massive libraries of compounds in high-throughput chemical screens. But it can also be done virtually, using specialized software and high computing power, which can be resource-intensive.

Concepts and issues

This is where Shkreli's Druglike should come in. In a white paper posted on Druglike's website, Shkreli partner Jason Sommer lays out some concepts on how the company's platform works. Essentially, it would use a decentralized computing network of task providers, solvers, and validators that would run and optimize virtual drug candidate screening. The white paper bears similarities to FoldIt, an online puzzle game that essentially uses distributed computing and crowdsourcing to fold proteins and predict their structures.

But Druglike's platform is touted as incorporating blockchain concepts and cryptocurrency transactions when users perform tasks, such as anchor screens. For example, the article describes a concept of "proof of optimization" as a "new" blockchain-based verification step to filter out jobs similar to Bitcoin's "proof of work" method.

"We propose a blockchain-based implementation of optimization proof, where a distributed ledger stores records indicating which proof solutions belong to which solvers. Smart contracts enable secure distribution of rewards to the solver who owns verified evidence." Sommer writes in the journal.

But, for now, the white paper only vaguely describes these concepts, and it is unclear how cryptocurrency transactions will generate value. It's also unclear how the project will be funded, although an online exchange suggested the company may seek venture capital funding.

On Twitter, where Shkreli has been banned, he currently has an account as