Martin Shkreli, “pharma bro,” fired by KaloBios

KaloBios Pharmaceuticals, the South San Francisco biotech firm that was saved by Martin Shkreli, has reported it has fired the notorious executive who was arrested last week on securities fraud charges, the Associated Press wrote Monday.

On the day of Shkreli’s arrest, KaloBios stock lost more than half its value in pre-market trading, the Wall Street Journal reported.

Trading in KaloBios was halted and continues to be halted Monday, its third straight day.

KaloBios is the second company that Shkreli, 32, has left since his arrest. He also resigned from Turing Pharmaceuticals.

Shkreli has been held up as the poster boy of U.S. capitalism run amok for what he has done at Turing Pharmaceuticals, a private company where he was chief executive.

He earned the moniker “pharma bro” for what saw as callousness after he dramatically raised the price of Daraprim. It is the only approved drug for treating a life-threatening parasitic infection given to people with weakened immune systems. The price went from $13.50 to $750 per pill.

In response to the backlash, Shkreli said that Turing would sell the drugs at a bulk rate to hospital groups and offered financial aid to those who couldn’t afford the drug.

Shkreli was part of a group of investors who kept KaloBios alive after the firm announced it would shut down.

After Shkreli disclosed in November that he had taken a large stake in the struggling drug firm, KaloBios shares soared. He became the CEO and chairman, and three new people joined the board. The company has struggled to develop drugs that treat cancer and leukemia.

His arrest on securities fraud charges stem from Shkreli’s hedge fund, MSMB Capital Management, and Retrophin, another pharmaceutical company. Federal authorities allege that Shkreli conducted a Ponzi-like scheme that defrauded investors.

Shkreli made $5 million bail and plead not guilty. He took to Twitter to defend himself:

In his first interview post-arrest, he told the Wall Street Journal that the feds were out to get him on anything because of his notoriety:

‘Trying to find anything we could to stop him,’ was the attitude of the government. Beating the person up and then trying to find the merits to make up for it—I would have hoped the government wouldn’t take that kind of approach.

Above:  Martin Shkreli is escorted by law enforcement agents in New York after being taken into custody last week following a securities probe. (AP Photo/Craig Ruttle)

 

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  • Monterey Shark

    Love the perp-walk picture…

 
 
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