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Martin Shkreli, the controversial CEO of Turning Pharmaceuticals who raised the price of Daraprim from $13.50 to $750 per pill, is facing securities fraud charges that could result in a years long jail sentence. KaloBios Pharmaceuticals (NASDAQ:KBIO), a company of which Shkreli was also CEO, has terminated his employment and Shkreli has resigned from its Board of Directors.
Martin Shkreli, the controversial CEO of Turning Pharmaceuticals who raised the price of Daraprim from $13.50 to $750 per pill, is facing securities fraud charges that could result in a years long jail sentence. KaloBios Pharmaceuticals (NASDAQ:KBIO), a company of which Shkreli was also CEO, has terminated his employment and Shkreli has resigned from its Board of Directors.
According to an article on Business Insider:
KaloBios Pharmaceuticals Inc. is a faltering drug company whose shares skyrocketed after Nov. 19, when Martin Shkreli disclosed a huge stake and became its CEO and board chairman. At the same time, a few people resigned from the company’s board of directors and were replaced by three new people. One of them, Tony Chase, resigned from that position last Thursday when Shkreli was ousted.
Trading in KaloBios shares has been halted since Thursday. The company wouldn’t answer questions Monday about who will take control and when its shares will resume trading.
It has been attempting to develop drugs to treat cancer and leukemia. Its shares tumbled 70 percent in January after its drug for lung infections failed in testing. The company announced it would shut down right before Shkreli and a group of investors swooped in with cash and pledges of financing to keep it going.
Federal prosecutors allege that from 2009 to 2014, Shkreli made bad trades that lost money of some investors in his hedge fund, MSMB Capital Management, then looted a pharmaceutical company called Retrophin, where he was then CEO, for $11 million to pay back his disgruntled clients.
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