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HealthKaloBios

Martin Shkreli’s Old Company Has Filed For Bankruptcy

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Reuters
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December 30, 2015, 9:23 AM ET
US-CRIME-JUSTICE-SHKRELI
Martin Shkreli (C), a former hedge fund manager and Chief Executive Officer of Retrophin, leaves the federal court after getting bail, in New York on December 17, 2015. Shkreli, the pharmaceutical CEO who caused a storm in September by jacking up the price of a life-saving drug, was arrested Thursday on fraud charges, prosecutors said. His arrest was not linked to the 5,000-percent increase in the price of Daraprim, a drug used to treat malaria and infections suffered by HIV-positive individuals. The FBI said he was targeted instead in an $11 million embezzlement probe at another company he once led, Retrophin. AFP PHOTO/JEWEL SAMAD / AFP / JEWEL SAMAD (Photo credit should read JEWEL SAMAD/AFP/Getty Images)Photograph by Jewel Samad — AFP/Getty Images
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KaloBios Pharmaceuticals (KBIO), which fired chief executive Martin Shkreli earlier this month, filed for Chapter 11 bankruptcy on Tuesday.

The drugmaker listed both its assets and liabilities in the range of $1 million to $10 million in its filing with the U.S. bankruptcy court for the District of Delaware.

The move comes on the heels of KaloBios‘ appeal of the Nasdaq decision to delist its shares.

A hearing on the appeal has been scheduled for Feb. 25, KaloBios said on Tuesday.

The company on Monday said two of its directors, Tom Fernandez and Marek Biestekhad, had resigned in the wake of Shkreli’s arrest for alleged securities fraud.

KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought about 70% of its shares.

Martin Shkreli gained notoriety when, as the chief executive of Turing Pharmaceuticals, he raised the price of a drug used to treat a dangerous parasitic infection to $750 from $13.50. He resigned as Turing CEO on Dec 18.

Shkreli was arrested on Dec. 17 for engaging in what U.S. prosecutors said was a Ponzi-like scheme at his former hedge fund and a pharmaceutical company he previously headed.

KaloBios could not be reached immediately for comment outside regular business hours.

Shares of San Francisco, California-based KaloBios have not traded since last Thursday.

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