Turing boss Shkreli joins KaloBios as CEO; takes 70% of shares
pharmafile | November 20, 2015 | Appointment | Medical Communications, Research and Development |
KaloBios Pharmaceuticals has announced the appointment of Turing CEO Martin Shkreli as its own new CEO and his election as chairman of the board.
Shkreli will continue as CEO of Turing Pharmaceuticals AG and the two companies will operate independently.
KaloBios shares rose 800% on Wednesday following the announcement and the news that Shkreli has purchased 70% of its stocks. Prior to this development, KaloBios has announced it was winding down operations because it was running out of cash while developing two potential cancer drugs.
KaloBios has received a commitment from Shkreli and other investors for an equity investment of at least $3 million. In addition, the Turing boss and the group of investors have committed to a $10 million equity financing facility, subject to applicable shareholder approval. In his new role, Shkreli will work with the company’s senior management team to ensure the company’s continued operations.
Martin Shkreli comments: “We believe that the KaloBios’ lenzilumab is a very promising candidate for the treatment of various rare and orphan diseases. This monoclonal antibody neutralises soluble granulocyte-macrophage colony stimulating factor (GM-CSF), a central actor in leukocyte differentiation, autoimmunity and inflammation. Lenzilumab has particular promise in chronic myelomonocytic leukemia (CMML), a disease with no FDA-approved treatment options and a three-year overall survival rate of 20%.”
He later added via his Twitter account: “So happy to rescue $KBIO from having to discontinue our promising blood cancer drug lenzilumab. Let’s hire the downsized employees back too!”
The company has approximately $5 million in cash and says it will endeavour to file its quarterly results on Form 10-Q as soon as possible.
KaloBios further announced that David Moradi, Tony Chase and Marek Biestek have been elected to the board of directors. In connection with these developments, the former directors resigned with immediate effect.
Yasmita Kumar
