While former Turing Pharmaceuticals CEO Martin Shkreli is out on bail for charges of securities fraud, another of his companies, KaloBios Pharmaceuticals, is reportedly in hot water.
The company, which Shkreli bought last month, fired him on Monday. But that hasn’t stemmed KaloBios’ problems: On Wednesday, KaloBios announced that it would be delisted from the Nasdaq stock market for “a number of reasons,” including Shkreli’s arrest. The interim chief financial officer Christopher Thorn has resigned, and its accounting firm Marcum LLP has also quit.
Shkreli became notorious in September when he bought rights to a toxoplasmosis drug through Turing, then jacked up the price by 5,000%. He was arrested on Thursday on security fraud charges for running what Brooklyn U.S. attorney Robert Capers called a “Ponzi scheme.” Capers accused Shkreli of using new companies as piggybanks for other debtors.
When Shkreli bought KaloBios last month, it was trading at less than a dollar, according to Bloomberg.