Stock Update (NASDAQ:KBIO): KaloBios Pharmaceuticals Inc to Wind Down Operations
KaloBios Pharmaceuticals, Inc. (NASDAQ:KBIO) announced that it will wind down its operations and that it has engaged the Brenner Group to lead those efforts.
“Recent discussions around a number of possible strategic transactions have ended, and as a result, the company believes it is highly unlikely that continuing to explore strategic alternatives could generate a viable transaction within the time frame allowed by our limited cash resources,” said Herb Cross, Chief Financial Officer and Interim Chief Executive Officer.
The company will discontinue its two current development programs, KB004, being studied in Phase 2 for certain hematologic malignancies, and lenzilumab, or KB003, scheduled to initiate Phase 1 development later this year in chronic myelomonocytic leukemia (CMML). KaloBios has engaged the restructuring firm of The Brenner Group to assist in the wind down of operations and liquidation of the company’s assets. The company recently announced a reduction in operations and headcount affecting approximately 60% of the company’s 28 employees. As a part of its wind down and handing over management of the wind down to The Brenner Group, the company expects to phase out the remaining employees over the next thirty to sixty days. As a result of these developments, the company will not be able to file its Form 10-Q for the third quarter, primarily due to resource constraints.
As a part of its restructuring and winding down, the company has repaid in full its outstanding secured loan obligation toMidCap Financial, secured lender to the company, in the approximate amount of $6.6 million. (Original Source)
Shares of KaloBios Pharmaceuticals close today flat. KBIO has a 1-year high of $17.04 and a 1-year low of $0.80. The stock’s 50-day moving average is $1.91 and its 200-day moving average is $2.98.
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.