KaloBios Emerges From Bankruptcy, With Rights To a New Rare Disease Treatment

KaloBios Pharmaceuticals Inc., the drug maker formerly run by Martin Shkreli, said Friday it emerged from bankruptcy. The company emerged with exit equity financing of $11 million, which is in addition to the $3 million debtor-in-possession financing it received in May. KaloBios said it acquired the rights to develop benznidazole for the treatment of Chagas disease from Savant Neglected Diseases LLC for an upfront payment of $3 million, and warrants for Savant to buy 200,000 KaloBios common shares. "The Company has risen from the ashes with a great deal of hard work and new thinking on how a biopharmaceutical company can operate and a clear vision to move forward as a successful, positive leader in our industry," said Chief Executive Cameron Durrant. Shkreli was ousted as CEO earlier this year after less than a month in the position. Shkreli had gained notoriety last year by raising the price of by 5,000%, before being arrested for fraud charges unrelated to KaloBios.