Shkreli, 32, was arrested December 17 for engaging in what USA prosecutors said was a Ponzi-like scheme at his former hedge fund and a pharmaceutical company he headed.
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Only two weeks after Martin Shkreli was, to the delight of many, placed under arrest for securities fraud, the KaloBios drug company he only recently took over is pursuing bankruptcy protection.
KaloBios listed its assets and liabilities in the range of $1 million to $10 million. KaloBios’s largest unsecured creditors include the University of Miami and Ernst & Young LLP.
Shkreli has also stepped down as the chief executive of Turing.
As of late, everything Pharma Bro Martin Shkreli touches tailspins, and KaloBios is the latest to fall into the Shkreli spiral.
Trading in KaloBios stock has remained halted at $23.59 a share since federal authorities announced the charges against Shkreli.
Shkreli was arrested in relation to a firm he founded in 2011, unrelated to the price hike he instituted for Daraprim with Turing Pharmaceuticals.
The delisting of the company’s stock on NASDAQ was due to the discretionary authority of the exchange operators.
KaloBios filed for Chapter 11 reorganisation on Tuesday, according to a statement on the website of the US Bankruptcy Court in Wilmington, Delaware.
KaloBios said last week it had fired Shkreli, who had assumed the chief executive role in November after leading an investor group that bought a majority stake in the South San Francisco-based biotech.
The company plans to use the bankruptcy to “evaluate its strategic alternatives” and to develop a restructuring plan, according to Reuters.
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KaloBios was running out of money and was planning to shut down operations last month when Shkreli took a controlling interest of the company’s stock.
