KaloBios files for chapter After Former CEO Martin Shkreli’s Arrest

The unhealthy news retains on coming for trade buddies of Martin Shrekli, the “dangerous boy” of prescribed drugs who made a name for himself previous this 12 months when he hiked up the fee of an AIDS drug from $13.50 to $750. less than two weeks after it fired Shkreli as CEO, South San Francisco-based totally most cancers drug analysis company KaloBios pharmaceuticals Inc. filed for bankruptcy.

KaloBios had taken strategic investment from Shkreli to keep away from closing down. however its plans have been thwarted when federal prosecutors charged Shkreli with securities fraud and wire fraud associated to a company the place he had up to now served as CEO.

in line with its site, KaloBios used to be creating a therapy for critically in poor health sufferers with most cancers. Shkreli’s reign as CEO was once brief-lived; he took the helm in November of 2015. With the appointment, KaloBios introduced that Shkreli and other investors would offer an funding of at the least $3 million.

This isn’t the first time Shkreli has been let go from one in every of his firms. Retrophin, a San Diego-based biotech based via Shkreli, unceremoniously dumped him in 2014 for allegedly committing stock trading irregularities.

prior to the infamous price hike, Shkreli was once recognized on Wall side road as one of the most very best within the business at short-selling stock. In his twenties, Shkreli set up his personal hedge fund and posted hit pieces on gossip websites to break the reputations of biotech corporations whose shares he was once shorting.