Published Date : Nov 27, 2015
Even as Martin Shkreli, the CEO of Turing Pharmaceuticals, has garnered a notorious rush of fame after raised the price of the life saving drug Daraprim from an earlier price of US$13.50 a pill to US$750 per pill in September, his latest involvement in a drug company has surprisingly served well for the company. Shares of KaloBios Pharmaceuticals Inc have observed a spectacular rise after Shkreli bought a major share of the company on the open market. The resulting short squeeze of shares of the company in the market pushed the price of the stock to as high as US$45.
Martin Shkreli’s decision to raise the price of Daraprim (by a staggering 5000%) immediately after buying it bought Shkreli international outcry and made him the most hated figure on Internet in no time. But his involvement in KaloBios Pharmaceuticals Inc helped the latter in an unexpected manner.
KaloBios Pharmaceuticals Inc. is involved in developing innovative therapies for the treatment of diseases of unmet medical needs and is currently focusing on developing treatments for cancer. KaloBios has recently focused on advancing its research on lenzilumab, an anti- granulocyte-macrophage colony-stimulating factor (GM-CSF) medication that KaloBios is examining for oncology where granulocyte-macrophage colony-stimulating factor may play an important role.
By the end of November, KaloBios Pharmaceuticals Inc. was on the verge of failure; on November 13, the company had announced that it was planning to wind down operations as the company stocks hit a new low of US$0.442.
In a statement that the company had released after its shares hit bottom, it was mentioned that the company had been discussing the possibility of having to cut down on its operations regarding the research in anti- GM-CSF as a number of possible strategic transactions had also come to an end. In the scenario, it was difficult for the company to survive with the limited cash resources.