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Company ousts Shkreli as CEO

Executive scorned for raising drug prices now faces federal fraud charges.

Martin Shkreli (C), chief executive officer of Turing Pharmaceuticals and KaloBios PhReuters

Drugmaker KaloBios Pharmaceuticals Inc said it removed Martin Shkreli as chief executive on Dec. 17, the day he was arrested on charges of a securities fraud.

Shkreli, who stepped down as CEO of private drugmaker Turing Pharmaceuticals Inc, also resigned from KaloBios' board of directors.

Shkreli was arrested for engaging in what U.S. prosecutors said was a Ponzi-like scheme at his former hedge fund and a pharmaceutical company he previously headed.

RELATED:Martin Shkreli attributes arrest to drug-price hikes: WSJ

The boyish pharmaceuticals entrepreneur was released on a $5 million bond on Thursday.

Shkreli lost control of his Twitter account to hackers on Sunday, hours after he took to the microblogging service to plead his innocence, said his spokesman, Craig Stevens.

KaloBios, which was planning to wind down, named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought about 70 percent of the company's shares.

The drug developer said on Monday that Tony Chase, who was appointed to the company's board along with Shkreli, had also resigned.

Trading in KaloBios shares was halted on Monday for the third straight session.

 

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