Martin Shkreli, chief executive officer of Turing Pharmaceuticals LLC, exits federal court in New York, US, on Thursday, December 17, 2015. Shkreli was arrested on alleged securities fraud related to Retrophin Inc., a biotech firm he founded in 2011. (credit: Louis Lanzano/Bloomberg via Getty Images)
On Tuesday, KaloBios Pharmaceuticals Inc., which recently fired its indicted CEO, Martin Shkreli, filed for Chapter 11 bankruptcy in Delaware.
The South San Francisco-based firm has faced a string of bad news since Shkreli’s December 17 arrest on securities fraud charges. The charges related to an alleged Ponzi-like scheme Shkreli was said to have orchestrated with another of his pharmaceutical companies, Retrophin, as well as two hedge funds he managed. After the arrest, KaloBios fired Shkreli, who pled not guilty to the charges and was released on a $5 million bond.
On December 18, the NASDAQ stock exchange notified KaloBios that it intended to delist the company’s shares from the exchange, citing Shkreli’s arrest and the arrest of Evan Greebel, the company’s former outside counsel. Next, the company’s interim CFO, Christopher Thorn, resigned, as did the company’s certifying accountant.
Read 4 remaining paragraphs | Comments