KaloBios (KBIO) Crumbles: Shkreli Arrested & Fired, Delisted And Board Members Quit

KaloBios, the relatively unknown penny stock pharma company, which was on the verge of bankruptcy, hit the headlines after controversial figure Martin Shkreli took a large stake in the company and became its CEO, is falling apart as managers flee the sinking ship.

Prior to Shkreli's investment, at the beginning of December, KaloBios was running out of cash fast and had planned to shut down before the end of the year. However, Shkreli rode to the rescue of KaloBios with a $8.2 million cash infusion enabling the company to fund the $2 million acquisition of a benznidazole program for treating Chagas disease from Savant Neglected Diseases. Shkreli's cash infusion also enabled him to take the position of CEO at KaloBios.