By: Matt Rego
Shares of biopharmaceutical company, KaloBios Pharmaceuticals, Inc. (OTC Pink: KBIOQ) jumped 11.50% on Friday, July 1, 2016. The biopharmaceuticals company has seen average daily volume of only around 18,000 over the past three months. However, over 176,200 shares or around $915,500 in dollar volume has already exchanged hands since the start of the Friday trading session.
The big news from KaloBios Pharmaceuticals, Inc. (OTC Pink: KBIOQ) shows that the company is emerging out of bankruptcy and Martin Shkreli’s fraud-shadow. In addition, KaloBios Pharmaceuticals, Inc. (OTC Pink: KBIOQ) was able to come out of Chapter 11 bankruptcy with rights to develop benznidazole, which treats Chagas disease. Here is a press release detailing of the latest bankruptcy developments for KaloBios Pharmaceuticals, Inc. (OTC Pink: KBIOQ):
KaloBios Pharmaceuticals Inc., the drug maker formerly run by Martin Shkreli, said Friday it emerged from bankruptcy. The company emerged with exit equity financing of $11 million, which is in addition to the $3 million debtor-in-possession financing it received in May. KaloBios said it acquired the rights to develop benznidazole for the treatment of Chagas disease from Savant Neglected Diseases LLC for an upfront payment of $3 million, and warrants for Savant to buy 200,000 KaloBios common shares. “The Company has risen from the ashes with a great deal of hard work and new thinking on how a biopharmaceutical company can operate and a clear vision to move forward as a successful, positive leader in our industry,” said Chief Executive Cameron Durrant. Shkreli was ousted as CEO earlier this year after less than a month in the position. Shkreli had gained notoriety last year by raising the price of by 5,000%, before being arrested for fraud charges unrelated to KaloBios.