Martin Shkreli Makes 1,080% On Penny Stock Days After Company Said It Would Shut Down
KaloBios Pharmaceuticals Inc (NASDAQ: KBIO) is a monoclonal antibody therapeutics company that traded as a penny stock as recently as this Monday.
The company now trades above the $15.00 mark on Wednesday's after-hours session after an SEC disclosure from noted biotech investor Martin Shkreli revealing he now owns 1.2 million shares -- 29 percent -- of shares outstanding.
On paper, Shkreli likely made a return of over 1,000 percent from the trade -- a profit of more than $17 million -- if he were to sell at current prices.
KaloBios, a stock with near 10 percent of its float short at the end of last month, said last Friday it would wind down operations and liquidate assets, adding that any expectation of strategic alternatives were "highly unlikely." The company said it would discontinue two development programs, in Phase 1 and Phase 2 stage, adding it would not be able to file its Form 10-Q for the third quarter.
The latest market data indicates just 0.10 percent of KaloBios shares were previously held by insiders, indicating Shkreli likely bought his stake on the open market.
According to a Form 4 filing with the SEC, Shkreli bought 500,169 shares at $0.61 apiece, with the remaining stakes purchased between $1.43 and $2.43.
There has yet to be an indication of Shkreli's plans (or lack thereof) for the company's pair of drugs, KB004 and KB003, used to treat myelofibrosis or myelodysplastic syndrome and chronic myelomonocytic leukemia, respectively.
KaloBios said management was not available to comment on the stock's move.
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