Quantcast

What's Next for KaloBios as Shkreli Faces Fraud Charges?


Shutterstock photo

It's been a roller-coaster ride for California-based biopharma company, KaloBios Pharmaceuticals, Inc. KBIO , with the company seeing major ups and downs over a short period of one month. From being close to winding down its operations in November, the company found a savior in the form of Martin Shkreli.

With a 70% investment being announced by a Shkreli-led investor group, KaloBios' shares shot up 402.4% (Read more: KaloBios Soars on Investment by Martin Shkreli-Led Group ). Shkreli also took on the role of Chief Executive Officer (CEO) of KaloBios. Since then, shares have been on an upswing (shares touched a 52-weeek high of $45.82 on Nov 23) until yesterday when the company's shares plunged 53.2% in pre-market trading with Shkreli being arrested.

Ironically, Shkreli who has been in the news mainly due to his price gouging tactics, did not get arrested due to pricing issues. His arrest is related to fraudulent practices committed during a 5-year period when he was also working as a hedge-fund manager.

While many on social media expressed delight at Shkreli's arrest, KaloBios' shareholders do not have much to be happy about. Trading in the company's shares was halted yesterday at 06:48:07 ET at a last price of $23.59 with the company being asked to submit additional information. Details regarding the information requested by Nasdaq were not available.

Trading in KaloBios' shares will remain halted until the company has fully satisfied Nasdaq's request for additional information.

Shkreli has since been released after having posted bail. Meanwhile, KaloBios will be looking to recover some of the lost value. The company is focused on the development of cancer treatments including for both hematologic malignancies and potentially solid tumors.

Currently some well-ranked stocks in the healthcare sector include companies like Amphastar Pharmaceuticals, Inc. AMPH , Evoke Pharma, Inc. EVOK and Mylan N.V. MYL . While Amphastar and Mylan are Zacks Rank #1 (Strong Buy) stocks, Evoke is a Zacks Rank #2 (Buy) stock.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AMPHASTAR PHARM (AMPH): Free Stock Analysis Report

MYLAN NV (MYL): Free Stock Analysis Report

EVOKE PHARMA (EVOK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Business , Investing , Stocks
Referenced Symbols: AMPH , MYL , EVOK


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research








Research Brokers before you trade

Want to trade FX?