Kalobios is seeking bankruptcy protection less than two weeks after its troubled CEO, Martin Shkreli, was arrested on charges of securities fraud.
It is the second pharmaceutical company with ties to the former hedge fund manager now in turmoil after his indictment on charges unrelated to his involvement with them. The other company, Turing Pharmaceuticals, is cutting jobs and seeking a new CEO after Shkreli resigned following his arrest. Under Shkreli, Turing acquired rights to a treatment for a rare parasitic infection and raised the price from $13.50 to $750 a pill. That shoved the company directly into the crosshairs of lawmakers under pressure to address soaring drug prices.