Pharmaceutical company KaloBios, delisted by Nasdaq

martin shkreli kalobios ceo

Pharmaceutical company KaloBios is constantly under the spotlight, after CEO Martin Shkreli was arrested due to several major charges of securities fraud, securities fraud conspiracy and wire fraud conspiracy.

According to News 4 Jax, the problems aren’t over for the company, as it was remove from the Nasdaq stock exchange. The move will be made “based on allegations of securities fraud, among other things”. Like expected, Martin Shkreli denied all the charges.

The company failed to deliver the Q3 financial results

Besides this, another reason why KaloBios was suspended is because they failed to file the quarterly results for the third quarter of the year.

After Shkreli was arrested last week, being accused of misappropriating the funds of another drug company he used to run, Retrophin, KaloBios‘ shares were suspended and they haven’t been traded anymore.

Until December 30, the stock will be delisted from the Nasdaq and the company hasn’t made any official statement regarding this, confirming that they will appeal or not the decision.

In an SEC filing made this Wednesday, KaloBios announced that its interim chief financial officer and its outside accounting firm will resign, starting with this Monday.

Appointed as CEO after buying 50% of the shares

Martin Shkreli was appointed as CEO back in November, after buying a majority stake in the company. He paid around $2.7 million for 50%, even though it was facing liquidation.

The main reason that lead to his arrest was the publicity made by the massive price hike or a drug owned and developed by Turing Pharmaceuticals, the other company KaloBios‘ CEO used to run. After the recent events, he stepped down as CEO of Turing as well.

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