KaloBios Pharmaceuticals files for bankruptcy

Before you go, we thought you'd like these...
Before you go close icon
Martin Shkreli: Drug Prices, Not Securities Fraud, Led to Arrest

Dec 30 (Reuters) - KaloBios Pharmaceuticals Inc, which fired chief executive Martin Shkreli earlier this month, filed for Chapter 11 bankruptcy on Tuesday.

The drugmaker listed both its assets and liabilities in the range of $1 million to $10 million in its filing with the U.S. bankruptcy court for the District of Delaware.

See photos of Shkreli's arrest:

6 PHOTOS
Martin Shkreli arrested
See Gallery
KaloBios Pharmaceuticals files for bankruptcy
Martin Shkreli, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, is belted into an awaiting car after being taken into custody following a securities probe, on Thursday, Dec. 17, 2015 in New York. A seven-count indictment unsealed in Brooklyn federal court Thursday charged Shkreli with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. (AP Photo/Craig Ruttle)
Martin Shkreli, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, sits in an awaiting car after being taken into custody following a securities probe, on Thursday, Dec. 17, 2015 in New York. A seven-count indictment unsealed in Brooklyn federal court Thursday charged Shkreli with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. (AP Photo/Craig Ruttle)
Martin Shkreli, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, is escorted by law enforcement agents in New York Thursday, Dec. 17, 2015, after being taken into custody following a securities probe. A seven-count indictment unsealed in Brooklyn federal court Thursday charged Shkreli with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. (AP Photo/Craig Ruttle)
Martin Shkreli, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, is escorted by law enforcement agents in New York Thursday, Dec. 17, 2015, after being taken into custody following a securities probe. A seven-count indictment unsealed in Brooklyn federal court Thursday charged Shkreli with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. (AP Photo/Craig Ruttle)
Martin Shkreli, the former hedge fund manager under fire for buying a pharmaceutical company and ratcheting up the price of a life-saving drug, is escorted by law enforcement agents in New York Thursday, Dec. 17, 2015, after being taken into custody following a securities probe. A seven-count indictment unsealed in Brooklyn federal court Thursday charged Shkreli with conspiracy to commit securities fraud, conspiracy to commit wire fraud and securities fraud. (AP Photo/Craig Ruttle)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

The move comes on the heels of KaloBios' appeal of the Nasdaq decision to delist its shares.

A hearing on the appeal has been scheduled for Feb. 25, KaloBios said on Tuesday.

SEE ALSO: Turkey detains two suspected Islamic State members planning New Year attack

The company on Monday said two of its directors, Tom Fernandez and Marek Biestekhad, had resigned in the wake of Shkreli's arrest for alleged securities fraud.

KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought about 70 percent of its shares.

Martin Shkreli gained notoriety when, as the chief executive of Turing Pharmaceuticals, he raised the price of a drug used to treat a dangerous parasitic infection to $750 from $13.50. He resigned as Turing CEO on Dec 18.

Shkreli was arrested on Dec 17 for engaging in what U.S. prosecutors said was a Ponzi-like scheme at his former hedge fund and a pharmaceutical company he previously headed.

SEE ALSO: Tin-foil hat Kickstarter is bad science and probably a scam

KaloBios could not be reached immediately for comment outside regular business hours.

Shares of San Francisco, California-based KaloBios have not traded since last Thursday. (Reporting by Rishika Sadam in Bengaluru; Editing by Sunil Nair)

More on AOL.com:
Amid Cuba opening, Havana quinceanera biz booms
Guns N' Roses to reunite for Coachella, possible stadium tour: Sources
US police get little training to handle crises with mentally ill

Read Full Story

Sign up for Breaking News by AOL to get the latest breaking news alerts and updates delivered straight to your inbox.

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners