A pharmaceutical company – once headed by an investor who ordered astronomical price increases on drugs while running another company – filed for Chapter 11 bankruptcy protection in Delaware.
Kalobios Pharmaceuticals filed on Tuesday, according to a court listing. The company says it is seeking a restructuring of its finances.
An attorney for the company is Morris Nichols Arsht & Tunnell, LLP, Wilmington.
The company, based in South San Francisco, CA, last week that announced that Martin was terminated as CEO of the company and resigned from his position as a member of the board of directors.
He had been appointed to the post in late November after making an investment in the company.
The Securities and Exchange Commission earlier announced that Shkreli, while serving as former CEO of pharmaceutical company Retrophin, was charged with committing fraud during a five-year period when he also was working as a hedge fund manager
The SEC alleged that Shkreli misappropriated money from two hedge funds he founded and made material misrepresentations to investors among other widespread misconduct. The SEC also charged Retrophin’s former outside counsel and corporate secretary Evan Greebel with aiding and abetting certain aspects of Shkreli’s alleged fraud.
In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York today announced criminal charges against Shkreli and Greebel.
Shkreli was in the news this year for raising the price of drugs at another pharma company he founded, in one case raising the price per pill from $13.50 to $750, MarketWatch reported.
His decision led to outrage in medical and political circles.
For a time, he defended his actions, claiming the proceeds would be plowed back into research.
