KaloBios submits request to appeal Nasdaq delisting

Before his arrest, Shkreli had been widely criticized for jacking up the price of Daraprim, the only approved drug to treat toxoplasmosis, a life-threatening infection that affects mostly pregnant women, cancer patients and AIDS patients.

If the Food and Drug Administration approved KaloBios’ application for benznidazole, the company could have also obtained a Priority Review Voucher from the government entitling it to a faster review of another drug.

Last month, KaloBios was running out of money and was planning to shut down operations when Shkreli and a consortium of investors bought about 70 per cent of its shares.

Nasdaq halted trading on KaloBios’ shares following his arrest. But its plans were thwarted when federal prosecutors charged Shkreli with securities fraud and wire fraud related to a company where he had previously served as CEO. Those vouchers can be sold to other companies, and KaloBios said they can fetch hundreds of millions of dollars in proceeds. A hearing on the matter is set for February 25. The company’s stock has struggled in recent weeks after former CEO Martin Shkreli stepped down from the company amid allegations of stock manipulation.

Trading of shares of company stock was halted shortly after the arrest of Shkreli, KaloBios has only two of its directors left after the resignations of Shkreli, Tom Fernandez, Marek Biestek and Tony Chase.

San Francisco-based KaloBios Pharmaceuticals (KBIO) listed 100 to 199 creditors and estimated liabilities between $1 million and $10 million dollars in the voluntary Chapter 11 filing submitted Tuesday in DE federal bankruptcy court.

Shkreli and Greebel pleaded not guilty and were released on respective bonds of $5 million and $1 million.

Mr Shkreli, who is best known for raising the price of a drug at a different comppany from $13.50 (€12.36) to $750 overnight, was sacked by KaloBios after the arrest and has denied wrongdoing.

This is not the only time Shkreli has run two companies simultaneously.