Biotech Linked to Martin Shkreli Files for Bankruptcy Protection

Shkreli was arrested two weeks ago on fraud charges and for allegedly running a Ponzi-like scheme when he was the CEO of yet another biopharmaceutical company, Retrophin.

KaloBios plans to use bankruptcy to “evaluate its strategic alternatives” and to develop a restructuring plan, according to documents filed with the US bankruptcy court in Wilmington, Delaware.

KaloBios said in a statement Tuesday that it had appealed the delisting and would have a hearing on February 25.

ALEC TABAK/FOR NY DAILY NEWS: Martin Shkreli was ousted as CEO of KaloBios on December 18, one day after he pleaded not guilty to fraud charges in federal court. The filing also named Shkreli, David Moradi and Anthion Partners II LLC as majority shareholders.

Market Watch, citing the bankruptcy filing, noted that KaloBios has $8.4 million in assets and $1.9 million in liabilities.

The former hedge fund manager drew public ire earlier in the year after Turing jacked up the price of a life-saving pill, Daraprim, to $750 from $13.50 a piece.

The San Francisco company’s largest creditors include the University of Miami, Ernst & Yong and Lonza Sales Ltd. Will Briganti, a Nasdaq spokesman, declined to comment beyond confirming the date of the appeal.

Two other directors, Tom Fernandez and Marek Biestek have also resigned from the board of directors. KaloBios Pharmaceuticals fired Shkreli as its chief executive officer after the arrest and has fervently denied any wrongdoing in the matter.

Shkreli and other investors picked up 70 percent stake in the company at an average price of $1.51 per share. The company is asking for a court order to make sure it can hand out December 31 payroll checks to its eight remaining employees.