KaloBios Pharmaceuticals, Inc. (NASDAQ:KBIO), announced that an investor group led by Martin Shkreli, the Founder and Chief Executive Officer of Turing Pharmaceuticals AG, has acquired 70% of its outstanding shares. KaloBios also announced the appointment of Martin Shkreli to the position of Chief Executive Officer and his election as Chairman of the Board. In his new role, Mr. Shkreli will work with the company’s senior management team to ensure the Company’s continued operations. KaloBios further announced that David Moradi,Tony Chase and Marek Biestek have been elected to the Board of Directors. In connection with these developments, the former directors have resigned, effective immediately.
KaloBios has received a commitment from Mr. Shkreli and other investors for an equity investment of at least $3.0 million. In addition, Mr. Shkreli and the group of investors have committed to a $10 million equity financing facility, subject to applicable shareholder approval.
Martin Shkreli, Chief Executive Officer, said, “We believe that the KaloBios’ lenzilumab is a very promising candidate for the treatment of various rare and orphan diseases. This monoclonal antibody neutralizes soluble granulocyte-macrophage colony stimulating factor (GM-CSF), a central actor in leukocyte differentiation, autoimmunity and inflammation. Lenzilumab has particular promise in Chronic Myelomonocytic Leukemia (CMML), a disease with no FDA-approved treatment options and a 3-year overall survival rate of 20%.”
An IND for a Phase I/II CMML monotherapy study of lenzilumab has been cleared by the Food and Drug Administration(NCT02546284). Preclinical studies have shown lenzilumab can be used to cause apoptosis in CMML cells by depriving them of GM-CSF. Lenzilumab may also have clinical utility in other rare autoimmune and inflammatory disorders. A 31-patient Phase I/II clinical trial of lenzilumab will begin enrollment at eight leading oncology clinical trial sites by year end 2015 with interim results possible as soon as the first half of 2016.
The company has approximately $5 million in cash and will endeavor to file its quarterly results on Form 10-Q as soon as possible. Mr. Shkreli will continue as Chief Executive Officer of Turing Pharmaceuticals AG and the two companies will operate independently. (Original Source)
Shares of KaloBios Pharmaceuticals closed yesterday at $10.40. KBIO has a 1-year high of $16 and a 1-year low of $0.44. The stock’s 50-day moving average is $2.10 and its 200-day moving average is $2.97.
On the ratings front, Needham analyst Alan Carr dropped coverage on KBIO, in a note released yesterday. According to TipRanks.com, Carr has a total average return of 26.4%, a 59.5% success rate, and is ranked #12 out of 3857 analysts.
KaloBios Pharmaceuticals Inc is a biopharmaceutical company. The Company is engaged in the development of monoclonal antibody therapeutics for diseases that burdens the society and to patients and their families.