( KBIO ) said an investor group led by Martin Shkreli, the Founder and Chief Executive Officer of Turing Pharmaceuticals AG, has acquired 70 percent of its outstanding shares.
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Shkreli will work with other members of senior management to “ensure the Company’s continued operations”.
KaloBios Pharmaceuticals (KBIO) stock is popping 81.54% to $18.88 on heavy trading volume on Friday, after the company appointed hedge fund manager Martin Shkreli as its new CEO and chairman of its board.
The investor group also promised a $10-million financing facility, subject to applicable shareholders.
KaloBios said earlier this month it was winding down its operations and liquidating assets and would discontinue development of two blood cancer drugs. KB003 is a Humaneered anti granulocyte macrophage colony stimulating factor monoclonal antibody which was developed for the treatment of severe asthma. Lenzilumab has particular promise in Chronic Myelomonocytic Leukemia (CMML), a disease with no FDA-approved treatment options and a 3-year overall survival rate of 20%.’ An IND for a Phase I/II CMML monotherapy study of lenzilumab has been cleared by the Food and Drug Administration (NCT02546284). Preclinical studies have shown lenzilumab can be used to cause apoptosis in CMML cells by depriving them of GM-CSF. KaloBios Pharmaceuticals has a 52-week low of $0.44 and a 52-week high of $16.00. The company has a 50 day moving average price of $2.10 and a 200-day moving average price of $2.97. Kalobios shares had skyrocketed sevenfold on Thursday.
On the ratings front, Needham analyst Alan Carr dropped coverage on KBIO, in a note released yesterday.
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Because of these plans we can not clearly know if the news that Martin Shkreli was named the new head of KaloBios Pharmaceuticals is either good or bad. The Business is centered on the creation for diseases that represent a burden to patients and to society and their own families.
