KaloBios Limits Martin Shkreli's Role
June 14 2016 - 4:20PM
Dow Jones News
KaloBios Pharmaceuticals Inc., the small drug company caught in
the glare of publicity surrounding Martin Shkreli, has reached a
deal that limits the price-hiking former executive's role in its
future.
Mr. Shkreli was chief executive of KaloBios in December when he
was arrested for securities fraud unrelated to KaloBios. He denies
the fraud charges and has said he was targeted unfairly for
prosecution due to the publicity surrounding his move, while at
another drug company, to raise the price of a vital drug
drastically overnight.
KaloBios ousted him as chief executive, but the continued
attention garnered by Mr. Shkreli has taken a toll on the
pharmaceutical company's efforts to get back on its feet in
bankruptcy protection.
On Tuesday, KaloBios detailed a settlement with Mr. Shkreli that
ends the threat of litigation over his brief tenure at the company,
which lasted less than a month, and sets the stage for "a cleaner
break from weight and burden of the past," as KaloBios's lawyers
put it in a court filing.
KaloBios wasn't involved in the events leading to the criminal
charges, which date back to Mr. Shkreli's days as a hedge-fund
manager and involve activities at another drug company, but
KaloBios's name continued to be associated with its former CEO. For
example, the brokerage account Mr. Shkreli pledged as security to
stay out of jail on the fraud charges is packed with KaloBios
shares.
Write to Peg Brickley at peg.brickley@wsj.com
(END) Dow Jones Newswires
June 14, 2016 16:05 ET (20:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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