Markets

KBIO Tanks on Shkreli Arrest

Shares of KaloBios Pharmaceuticals ( KBIO ) plummeted over 50% in pre-market trading this morning following the news that controversial CEO Martin Shkreli was arrested on securities fraud charges.

Shkreli, a 32-year old high school drop out, rose to fame in September when he announced that his company bought the manufacturing license for a drug called Daraprim. The move fueled public outrage because the drug is considered a life saving pill; it treats toxoplasmosis a parasite affliction, and it is used by AIDs patients.

With that said, his arrest has nothing to do with Daraprim. According to the BBC , the FBI has been investigating him since January when Retrophin, a company he founded in 2011, received a subpoena from prosecutors. Shkreli is accused of illegally taking stock from Retrophin.

Shkreli was appointed CEO of KaloBios in November. KaloBios was actually a penny stock before Shkreli invested over $5 million in the company. Shares quickly skyrocketed 700% from $1.97 to $16 per share following news of the investment.

Social Media Reacts

When Martin became a top story for jacking up the price of Daraprim, many people across social media relentlessly ridiculed him. Today, the social media world is ecstatic to see the natural force of karma in play. Below we have highlighted some amusing posts about Martin since his arrest was made public:

Karma is real: Pharma bro Martin Shkreli reportedly arrested https://t.co/UuZwq1tVwt pic.twitter.com/gxFUKudVWO- Rightpro Biz (@rightprobiz) December 17, 2015
IN 1 hour, the Martin Shkreli story on NYT got over 27k likes ...lol
- Silky Johnson (@ManeRok) December 17, 2015
Pharmaceutical Kingpin Martin Shkreli Arrested For Securities Fraud
- blade brown (@MrBrandonBurkes) December 17, 2015
Pharma Douchestick CEO Martin Shkreli Arrested For Being Giant Douche, Also Fraud https://t.co/E8xTawmt5k pic.twitter.com/SCgjqsFFyq
- Wonkette (@Wonkette) December 17, 2015
Martin Shkreli be like... pic.twitter.com/iYPFPjHKfQ
- Stock Brainiac (@StockBrainiac) December 17, 2015
The guy who bought the Wu-Tang Clan album for $2 Million was arrested for fraud: https://t.co/Ta6BiQzsjE pic.twitter.com/agLA5YPtjA
- Complex Music (@ComplexMusic) December 17, 2015

Laughs Abound

It's interesting to see the social media world almost unanimously agree to hate someone, and we have been blessed with some hilarious posts. However, KaloBios and its investors are not laughing. The company will be looking to move forward, with or without Shkreli, and recover some of its lost value.

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


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

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