News

Actions

Martin Shkreli’s KaloBios has declared bankruptcy

Default-Image_1280x720.png
Posted at 11:41 AM, Dec 30, 2015
and last updated 2015-12-30 11:41:51-05

NEW YORK — KaloBios Pharmaceuticals, which was briefly led by troubled CEO Martin Shkreli, filed for bankruptcy on Tuesday.

The Chapter 11 filing said KaloBios has between 100 and 199 creditors. It has assets of more than $8 million, and roughly $1.9 million in debt.

The filing is the latest twist in a rollercoaster few weeks for the biotech firm, thanks mostly to Shkreli, who has been indicted on criminal charges that he bilked another company — Retrophin — out of millions of dollars.

Before Shkreli came along in November, KaloBios had planned to liquidate and lay off 17 workers (61% of its staff).

But the company’s shares surged more than 400% after an investment group led by Shkreli purchased a majority stake in the struggling firm. Shkreli was quickly made CEO.

But that’s ancient history. Since Shkreli’s arrest on Dec. 18, KaloBios has fired Shkreli as CEO and he has resigned from the board of directors. The company has also been delisted from the Nasdaq.

Shkreli is best known for hiking the price of a life-saving drug by more than 5,000% while CEO of Turing Pharmaceuticals, another drug company.

Shkreli has maintained his innocence, arguing he has been targeted by federal authorities due to the drug price hike at Turing. He is free on a $5 million bond.

RELATED:

‘Most Hated’ CEO’s $1 million school donation angering alumni

Out on bail, Martin Shkreli starts live streaming

‘Most hated man’ Martin Shkreli pays $2 million for Wu-Tang Clan album

Drug company that hiked price of pill from $13.50 to $750 cuts price – to $375

Drug company CEO who hiked price 5,000% takes over cancer drug maker

Drug company CEO who hiked price 5,000% goes to war with CNBC

Company to offer $1 alternative to cancer pill that saw price climb 5,000%

Hillary Clinton calls for U.S. probe of 5,000% drug price hike

Drug company CEO who hiked price 5,000% furious with Bernie Sanders for rejecting donation

Company that hiked drug price 5,000% now under antitrust probe

Drug that skyrocketed 5,000% hasn’t come down in price despite CEO’s promise

‘Most hated’ pharmaceutical CEO’s contact info exposed online

Meet the ‘most-hated man in America’ who hiked the price of an AIDS drug from $13.50 to $750 a pill