Kalobios files for bankruptcy

Nasdaq issued the delisting letter to the company last week, citing the allegations of fraud leveled against Shkreli and the company’s outside counsel, according to the Wall Street Journal.

On Tuesday, as KaloBios filed for bankruptcy, the company announced that it appealed the NASDAQ delisting. As chief executive at Turing Pharmaceuticals, Shkreli increased the price of the drug from $13.50 to $750 a pill.

Shkreli resigned from privately held Turing Pharmaceuticals following his arrest.

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. Trading of KaloBios stock was halted upon Shkreli’s arrest, both because of his detention and because of the company’s failure to comply with quarterly financial reporting requirements.

In the most recent development, KaloBios filed for Chapter 11 bankruptcy protection with a DE bankruptcy court on Tuesday.

As a part of the filing, KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) had to list estimates of their assets and liabilities, in which they put ranges of $1 million to $10 million for each.

The San Francisco company’s largest creditors include the University of Miami, Ernst & Yong and Lonza Sales Ltd. Marcum, a microcap-focused public-accounting firm, signed up to audit KaloBios just weeks ago at Shkreli’s request. The company appealed the decision of exchange to suspend trading of its stock.

KaloBios said Monday that two of its directors, Tom Fernandez and Marek Biestek, had resigned.

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 company is asking for a court order to make sure it can hand out December 31 payroll checks to its eight remaining employees.