KaloBios Soars 800% After Martin Shkreli Takes Control
KaloBios stock soared more than 800% in late trading Wednesday, after Turing Pharmaceuticals CEO Martin Shkreli gained control of a majority of the shares. KaloBios announced Friday that it was winding down operations because it was running out of cash while developing two potential cancer drugs. However, the company said Wednesday afternoon that more than 50% of its stock had been purchased by Shkreli and associates, and that discussion had begun on continuing operations. "Addressing short-term cash needs is our first priority, and we continue to be open to further dialogue," KaloBios Chief Executive Ronald Martell said in the announcement. Shkreli became a poster boy of sorts for high-priced pharmaceuticals when The New York Times wrote about Turing earlier this year, noting the company had bought a drug for infectious disease that sold for $13.50 a pill and increased that price to $750. Shkreli later said he would cut the price of the drug after an uproar. KaloBios stock ended Wednesday's regular session at $2.07, then topped $19 in the after-hours session.
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