KaloBios fires Shkreli as CEO

Mon Dec 21, 2015 1:24pm EST
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(Reuters) - Drugmaker KaloBios Pharmaceuticals Inc KBIO.O said it fired Martin Shkreli as chief executive on Dec. 17, the day he was arrested on charges of a securities fraud.

Shkreli, who has become the poster child for the issue of soaring prices for prescription medications, has already stepped down as CEO of private drugmaker Turing Pharmaceuticals Inc, in addition to resigning from KaloBios' board of directors.

Shkreli was arrested last week for engaging in what U.S. prosecutors said was a Ponzi-like scheme at his former hedge fund MSMB Capital Management and Retrophin Inc (RTRX.O: Quote), a company he headed before he took the helm of Turing Pharmaceuticals.

After buying a 60-year-old anti-infective drug often used by AIDS patients earlier this year, Turing raised the price overnight to $750 a tablet from $13.50.

The increase propelled Shkreli to the media spotlight: Presidential candidate Hillary Clinton pilloried him for gouging, and he was pulled into congressional drug pricing investigations.

The government charges do not include activities at privately held Turing.

Shkreli, who was arrested on Thursday and released soon after on a $5 million bond, said he has been the target of legal authorities for his much-criticized drug-price hikes and his over-the-top public persona, the Wall Street Journal reported on Monday.

"'Trying to find anything we could to stop him' was the attitude of the government," Shkreli told the Journal in an interview, saying he was arrested because of a social experiment and teasing people over the Internet, deeming the arrest unjust.

An FBI spokeswoman declined to comment on the WSJ report.   Continued...

Martin Shkreli (C), chief executive officer of Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc, departs the U.S. Federal Court after an arraignment following him being charged in a federal indictment filed in Brooklyn relating to his management of hedge fund MSMB Capital Management and biopharmaceutical company Retrophin Inc. in New York December 17, 2015. REUTERS/Lucas Jackson