ML-Implode News - KaloBios Takes Measures to Limit Martin Shkreli's Shareholder Rights

KaloBios Pharmaceuticals on Thursday said it had reached an agreement with ousted Chief Executive Martin Shkreli to limit his shareholder rights, a week after the rare disease drugmaker said it had emerged from bankruptcy.
Mr. Shkreli, who now holds less than 14% of the South San Francisco-based biotech firm's shares according to the company, was arrested in December on securities-fraud charges unrelated to KaloBios. Soon after, the company filed for bankruptcy protection, fearing the turmoil surrounding Mr. Shkreli created an "imminent threat" to its liquidity.

On Thursday, the company said it signed a governance agreement with Mr. Shkreli, including an option for the company to repurchase his shares as well as provisions significantly restricting his actions as a shareholder.
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Mr. Shkreli, also formerly the CEO of Turing Pharmaceuticals, was widely criticized for increasing the price of anti-parasite drug Daraprim by fiftyfold. Before the criminal charges, which he denies, he alarmed advocates for rare-disease treatments when he told investors he intended to price Chagas disease treatment benznidazole in line with hepatitis C treatments that can cost as much as $94,000 per course. In Latin America, where most cases of Chagas disease are found, benznidazole costs $60 to $100, according to the Drugs for Neglected Diseases Initiative.

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KaloBios Takes Measures to Limit Martin Shkreli's Shareholder Rights