KaloBios implodes after Martin Shrekli's arrest.

The Pharma Firm That Martin Shkreli’s Company Bought Is Officially Imploding

The Pharma Firm That Martin Shkreli’s Company Bought Is Officially Imploding

Business Insider
Analyzing the top news stories across the web
Dec. 24 2015 11:04 AM

The Pharma Firm That Martin Shkreli’s Company Bought Is Officially Imploding

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KaloBios Pharmaceuticals Inc will be delisted from the Nasdaq.

Photo by Andrew Burton/Getty Images

This post originally appeared on Business Insider.

The pharmaceutical company once led by Martin Shkreli has officially imploded.

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In a filing with the SEC on Wednesday, KaloBios announced that its interim CFO and auditor both resigned, leaving the company with limited executive leadership.

Additionally, the Nasdaq informed KaloBios that its stock would be delisted. Shares of the company had been halted since Shkreli's December 17 arrest on securities-fraud charges. Shkreli was fired as CEO of KaloBios on December 17.

KaloBios shares, which in November were trading below $1, spiked to as high as $40 a share after Shkreli and his associates acquired 70 percent of the company's outstanding shares.

In addition to executive departures and a delisting of shares, Marcum LLP resigned as KaloBios' independent auditing firm, though according to the filing with the SEC, "Marcum's resignation was not due to any reason related to the Company's reporting or accounting operations, policies or procedures."

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Shkreli first came into the public eye earlier this fall when presidential candidate Hillary Clinton called out the pricing practices of his company, Turing Pharmaceuticals, which raised the price of one drug by 5,000 percent. Shkreli has also resigned from the CEO role at Turing.

Shkreli's arrest last Thursday was related to fraud charges stemming from his leadership of two hedge funds and a pharmaceutical company called Retrophin, of which he served as CEO from 2012 to 2014.

And while his arrest was unrelated to the controversial drug-price increases put in place at Turing, Shkreli told The Wall Street Journal that he believes he was targeted by authorities because of these increases and because he's become an increasingly public persona over the last several months.