KaloBios Removes Martin Shkreli from CEO role

Martin Shkreli fired from KaloBios

Drugmaker KaloBios Pharmaceuticals has removed Martin Shkreli as CEO. The company said in a press release that he was terminated from the role on December 17, the same day he was arrested for alleged securities fraud. 

Shkreli recently stepped down as the CEO of private drugmaker Turing Pharmaceuticals and also resigned from KaloBios’ board of directors.

Shkreli was arrested last Thursday for engaging in what US prosecutors have called a Ponzi-like scheme at his former hedge fund and pharmaceutical company Retrophin. He paid a $5 million bond and was immediately released.

Spokesman Craig Stevens also said Shkreli lost control of his Twitter account to hackers on Sunday, hours after he took to the service to please his innocence.

Shkreli and a consortium of investors purchased 70% of KaloBios in late November. Shkreli was named CEO after the acquisition and announced that he would keep the company open despite recent plans to wind down operations.

The drug developer said on Monday that Tony Chase, who was appointed to the company’s board along with Shkreli, had also resigned.

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Trading in KaloBios was halted on Monday for the third straight session.

Written by John Howard

John Howard

John Howard is the Business Editor at BusinessPundit.com. He is an avid watcher of markets, a wallflower of retail, and a fan of disruptive businesses that utilize technology and unique ideas to form brilliant new ways of doing business.