Needham Drops Coverage of KaloBios Pharmaceuticals Inc (KBIO) Following Turnover In Ownership
KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) shares skyrocketed more than 400% today after Turing Pharmaceuticals founder Martin Shkreli disclosed that he has purchased 1.2 million shares of the company.
However, Needham analyst Alan Carr today dropped coverage of KaloBios, writing, “Kalobios announced last week plans to wind down operations and liquidate company assets. Management had expressed concern at the time that it was unlikely efforts to explore strategic alternatives would result in a viable transaction prior to depletion of cash. Kalobios ended 2Q15 with $23.2M in cash and subsequently repaid in full its outstanding $6.6M secured loan obligation.”
Furthermore, “SEC filings yesterday indicate a turnover in ownership, raising more questions with respect to future direction of the company. Because the company is not a fit with our current coverage strategy, we are DROPPING COVERAGE.” Is this a sign of things to come?
According to TipRanks.com, Alan Carr is one of the top analysts on Wall Street covering biotechnology. His picks average a 27 percent one-year return, and he’s ranked in the top 10 percent of all analysts.
Yesterday, Carr reiterated his positive stance on the pharmaceutical giant Gilead Sciences and liver disease company Intercept Pharmaceuticals Inc, following the annual meeting of the American Association for the Study of Liver Diseases (AASLD) in San Francisco. (Click here)