Martin Shkreli’s other pharma company is dramatically collapsing

Martin Shkreli, chief executive officer of Turing Pharmaceuticals LLC, exits federal court in New York, US, on Thursday, December 17, 2015. Shkreli was arrested on alleged securities fraud related to Retrophin Inc., a biotech firm he founded in 2011. (credit: Louis Lanzano/Bloomberg via Getty Images)

In a swift set of blows, KaloBios Pharmaceuticals, Inc., a biotech company formerly headed by Turing’s Martin Shkreli, announced that it is being delisted from the Nasdaq stock exchange, and that the company's interim CFO and accounting firm have both resigned.

The series of events follows the company’s Monday announcement that it had fired Shkreli, former CEO and chairman. On December 17, Shkreli was arrested on securities fraud charges relating to another biotech company he headed, Retrophin, as well as two hedge funds he managed. He pled not guilty and was released on a $5 million bond.

In a press release dated Wednesday, KaloBios reported that the Nasdaq informed the company in a letter sent December 18 that it would be delisted from the exchange. The letter cited a number of reasons for the delisting, including Shkreli’s indictment plus the simultaneous indictment of Evan Greebel, the company’s former outside counsel.

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