KaloBios Says Martin Shkreli Has Become CEO, Company Has Secured At Least $3 Million

KaloBios Pharmaceuticals Inc. said late Thursday that Martin Shkreli, founder and head of Turing Pharmaceuticals AG, has become its chief executive after he led an investor group that has purchased a 70% stake in the company. Shkreli stirred controversy in recent weeks by acquiring a drug used to treat parasitic infection and immediately hiking the price. The executive and other investors have committed to an equity investment of at least $3 million for KaloBios, and to a $10 million equity financing facility, that must be approved by shareholders. KaloBios had announced last week that it was winding down operations after running out of cash while trying to develop two cancer drugs. The stock surged more than 800% in after-hours trade Wednesday, as news of the deal with Shkreli broke. The shares gained another 17% in premarket trade Friday. The stock's reversal caused trouble for at least one short seller, who lost $106,445.56 on his position.