UPDATE: Shkreli resigns post as Turing Pharma CEO, kicked out of KaloBios
UPDATE: KaloBios has announced that Martin Shkreli resigned from its board of directors and was removed from his approximately month-long tenure as the biotech's CEO following his arrest last Thursday. The firm also removed Tony Chase, who was appointed to its board at the same time as Shkreli.
There is now an open question as to KaloBios' fate. The company was slated to go under before Shkreli swooped in with fellow investors to save it from bankruptcy. Now, with Shkreli out of the picture, the biotech's future appears murky.
KaloBios trading has been halted since Thursday.
- Turing Pharmaceuticals announced on Friday that its CEO, Martin Shkreli, will resign his post.
- Shkreli was arrested by FBI agents on Thursday morning on securities and wire fraud charges related to his time at the pharma company Retrophin. He's accused of defrauding investors at his former hedge funds MSMB Capital and MSMB Healthcare and illegally using Retrophin funds to pay off debts and obligations to those investors. You can read our detailed explainer on the charges here.
- Shkreli will be replaced by Turing's board chairman Ron Tilles, who will serve as interim CEO until a permanent chief is installed. The company also said that the toxoplasmosis drug Daraprimp will continue to be available to providers and patients despite Shkreli's indictment and ouster.
That was fast.
Just 24 hours after Shkreli's indictment, his firm is cutting him loose. Turing was at the center of the controversy that led to Shkreli's nationwide infamy as the company purchased the rights to Daraprim and then promptly spiked its price by 5,000%.
"We wish to thank Martin for helping us build Turing Pharmaceuticals into the dynamic research focused company it is today, and wish him the best in his future endeavors," said Tilles in a statement announcing the decision.
He also sought to reassure patients who rely on Daraprim that their access to the drug would remain unfettered (although still at a very high price point). "Turing assures healthcare providers and patients that Daraprim remains available and is unaffected by these events," read the statement.
There's still no word from Shkreli's other company, KaloBios, on his fate there (UPDATED ABOVE). Shkreli became that firm's chief executive in November after saving it from impending bankruptcy with a nearly $2 million investment. He had also said that he planned to slap an enormous price hike on a Chagas disease treatment purchased by the company earlier this month.