Shkreli's KaloBios Files for Bankruptcy

Features Reuters

KaloBios Pharmaceuticals, which fired chief executive Martin Shkreli earlier this month, filed for Chapter 11 bankruptcy on Tuesday.

Continue Reading Below

The drugmaker listed both its assets and liabilities in the range of $1 million to $10 million in its filing with the U.S. bankruptcy court for the District of Delaware. 

The move comes on the heels of KaloBios' appeal of the Nasdaq decision to delist its shares.

A hearing on the appeal has been scheduled for Feb. 25, KaloBios said on Tuesday.

The company on Monday said two of its directors, Tom Fernandez and Marek Biestekhad, had resigned in the wake of Shkreli's arrest for alleged securities fraud.

KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought about 70 percent of its shares.

Continue Reading Below

Martin Shkreli gained notoriety when, as the chief executive of Turing Pharmaceuticals, he raised the price of a drug used to treat a dangerous parasitic infection to $750 from $13.50. He resigned as Turing CEO on Dec 18.

Shkreli was arrested on Dec 17 for engaging in what U.S. prosecutors said was a Ponzi-like scheme at his former hedge fund and a pharmaceutical company he previously headed.

KaloBios could not be reached immediately for comment outside regular business hours.

Shares of San Francisco, California-based KaloBios have not traded since last Thursday.

(Reporting by Rishika Sadam in Bengaluru; Editing by Sunil Nair)