KaloBios Appoints Martin Shkreli As CEO, Obtains New Financing Commitment

Controversial biotech entrepreneur Martin Shkreli is hoping to resurrect the nearly-out-of-business biotech KaloBios ($KBIO), taking over as CEO after leading a group of investors to acquire a controlling stake.

KaloBios Pharmaceuticals (KBIO) stock is popping 81.54% to $18.88 on heavy trading volume on Friday, after the company appointed hedge fund manager Martin Shkreli as its new CEO and chairman of its board.

Shkreli said his new role won’t affect operations at Turing, the privately held drug company that sparked worldwide controversy earlier this year when it acquired an old, little-used drug and raised its price by about 5,000%. The company also elected David Moradi, Tony Chase, and Marek Biestek to its Board. In connection with these developments, the former directors have resigned, effective immediately. Shkreli and the group of investors have committed to a $10 million equity financing facility, subject to shareholder approval.

“We believe that the KaloBios’ lenzilumab is a very promising candidate for the treatment of various rare and orphan diseases”, Shkreli said. KB003 is a Humaneered anti granulocyte macrophage colony stimulating factor monoclonal antibody that was developed for treating acute asthma.

The company has nearly $5 million in cash, and will try to file its quarterly results on Form 10-Q as soon as possible. Shkreli has said that he has no intention of taking Turing public and dismissed the idea of merging the company with KaloBios.

KaloBios Pharmaceuticals, Inc.is a biopharmaceutical firm.

The company named KaloBios underwent a few hard times since its failed clinical testing of a drug that was supposed to treat cystic fibrosis, a disease that occurs in one of every 3.000 people and nearly 4% are carrying it without being infected. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release.