One of the drug firms that was led by infamous “pharma bro” Martin Shkreli has filed for Chapter 11 bankruptcy, according to a report.
KaloBios Pharmaceuticals, a small biotech firm, had ousted Shkreli as its CEO this month after he was arrested on federal charges of securities fraud, Reuters reported. KaloBios couldn’t immediately be reached for comment.
The federal charges weren’t related to what made Shkreli notorious. His former company, Turing Pharmaceuticals, acquired a drug that treats parasites in August and jacked up the price 5,000 percent overnight.
Shkreli was undeterred by the public backlash that followed, saying at a recent event that he would have raised prices even higher.
Shkreli resigned from Turing a day after his arrest by the FBI. He pleaded not guilty to the charges, which stem from alleged fraud when he lead another biotech company called Retrophin.
The 32-year-old former hedge fund manager had led KaloBios since November, when he and some other investors gained a majority of shares of the company.
