KaloBios Pharmaceuticals Bankrupcy Filing May Offer One Last Breather

KaloBios listed its assets and liabilities in the range of $1 million to $10 million. The largest creditors of KaloBios that are unsecured include Ernst & Young and the University of Miami. Shkreli installed some other executives from privately held Turing Pharmaceuticals Inc., a company that he founded, into top management positions at KaloBios.

The drug maker’s latest move comes on the heels of its appeal of Nasdaq’s decision to delist its shares. The San Francisco biopharmaceutical firm said there were no…

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 stock plunged by 53% in early December 17 trading in the minutes following the news of the arrest of Shkreli. Shkreli was sacked by KaloBios after the arrest and has denied wrongdoing.

Shkreli was brought in “to ensure the Company’s continued operations“, KaloBios said in a statement when he was appointed CEO. Moreover, it has filed for Chapter 11 bankruptcy in a DE district court. The 62-year old drug is used to treat toxoplasmosis, a parasitic infection that can cause brain damage in babies and people infected with AIDS. The company’s stock has struggled in recent weeks after former CEO Martin Shkreli stepped down from the company amid allegations of stock manipulation.

The company also announced Monday that two of its directors, Tom Fernandez and Marek Biestekhad, had resigned following Shrkeli’s arrest. The company said that there had been no disagreements which led to these resignations.

Shkreli-infamous for raising the price of the life-saving drug Daraprim by more than 5,000 percent in September as CEO of Turing Pharmaceuticals-became CEO of KaloBios in November after buying a majority stake. There were some executives which Shkreli had brought into the company from his own company, Turing Pharmaceuticals.