Bears Eye KaloBios Pharmaceuticals Inc (KBIO) As Shkreli Gets the Boot

With the shares still halted, KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) boots CEO Martin Shkreli

Josh Selway

Dec 21, 2015 at 11:25 AM

KBIO

While shares of KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) remain halted for the third straight day, the company has still landed in the spotlight. The firm just made public that it removed CEO Martin Shkreli on Thursday, following his arrest for securities fraud -- which he blamed on a government witch hunt. The company also announced that Shkreli gave up his spot on the firm's board.

After closing last Thursday at $23.59, KBIO was on the verge of losing half its value before being halted before the open on Friday. When the shares begin trading again, short sellers will be waiting with open arms, as short interest has been increasing steadily on the stock in recent weeks, more than doubling during the past reporting period.

It's been a wild quarter for the biotech stock. KaloBios Pharmaceuticals Inc was trending lower for over two years, before skyrocketing in November when Shkreli became its largest shareholder and CEO. As such, the stock has added an astonishing 1,135% during the quarter, but could be near single-digit territory once trading resumes.

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