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Shkreli Out At Turing, KBIO Looking To Move On


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Controversial CEO Martin Shkreli has stepped down from his position at Turing Pharmaceuticals Friday following his arrest on securities fraud charges.

According to a Turing investor involved in the talks which led to Shkreli's resignation, via The Street , Turing is currently a "mess" and "needs to be cleaned up." Shkreli and Turing came under fire earlier this year when the company bought the rights to a 50-year-old drug used by AIDs patients and raised its price from $13.50 per pill to $750 per pill.

Internally, Shkreli's tenure at Turing was marked by his exorbitant spending. Nevertheless, his arrest actually stems from his time as CEO at Retrophin RTRX . Federal prosecutors claim that Shkreli plundered Retrophin for cash to pay off investors that lost money in his defunct hedge fund, MSMB Capital Management.

Shkreli is also the CEO of KaloBios Pharmaceuticals KBIO . Shkreli joined KBIO in November when he purchased 70% of the company's outstanding shares. The Street reports that efforts to remove Shkreli as CEO of KalaBios are underway, according to people with knowledge of the matter.

The trading of KBIO shares was halted Thursday after the news of Shkreli's arrest sent shares in a freefall. The stock has not reopened and is currently down over 50% from its last closing price.

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This article appears in: Investing , Stocks
Referenced Symbols: RTRX


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