Martin Shkreli Buys Majority Stake In Drug Company And Its Shares Jump 400%

Martin Shkreli

Martin Shkreli, the hedge fund manager turned pharmaceutical executive, whose company, Turing, raised the cost of a drug used by AIDS patients by over 5,000% from $13.50 a pill to $750, is at it again. 

This time, Shkreli has purchased a majority stake in KaloBios, news that sent its shares soaring by 400%.

 

KaloBios, which has several cancer drugs in development, announced on Wednesday night that a group “comprised of Martin Shkreli and associates” acquired more than 50% of the company.

SEC filings show that Shkreli purchased the stock Monday and Tuesday at a range of 61 cents a share to $2.43 a share.

KaloBios (KBIO) closed on Wednesday at $2.07 and ended the day Thursday at $10.40. As of Friday morning it is trading at 1.85.

KaloBios shares were trading low because it announced last Friday that it planned to wind down operations and liquidate its assets.

The company also said it was planning to discontinue the development programs for two cancer drugs — one for hematologic malignancies and another for chronic myelomonocytic leukemia.

Last week the company laid off 17 employees or 61% of its staff.

KaloBios executive chairman Ronald Martell said in a statement Wednesday that the company “received communications from Mr. Shkreli informing us of his group’s ownership position, and a proposal to continue the company’s operations.”

It’s still not clear what plans he has for the company, but in true Martin Shkreli fashion, the deal has already drawn the ire of at least one trader. A GoFundMe page was recently set up by a trader who is attempting to raise $100,000 he now owes to ETrade after his short position blew up when KaloBios was acquired.