Nano cap KaloBios (NASDAQ:KBIO) names Martin Shkreli as Chairman & CEO after his investor group acquired 70% of the company's outstanding shares. A $3M equity investment has been committed in addition to an equity financing facility of $10M, subject to shareholder approval (which should be a slam dunk).
Students of the market have had the privilege of observing one of the most brutal short squeezes in history over the past four days. The stock bottomed at $0.44 on Monday morning after the company's announcement on Friday afternoon that it was shutting down. Mr. Shrkeli's group jumped in and the stock skyrocketed, peaking at $14.72 yesterday.
KaloBios will operate independently from Mr. Shkreli's Turing Pharmaceuticals AG.
Thinly traded nano cap KaloBios Pharmaceuticals (KBIO +43.9%) jumps again in early trading on robust volume. Shares have more than doubled over the past two trading sessions.
A possible driver of the bullish action may be Geron's (GERN -3.5%) interest in acquiring an early-stage oncology asset via licensing or outright purchase of a company. In the company's Q4 earnings call in March, CEO Chip Scarlett said the due diligence process to assess potential candidates was underway.
Kalabios' two lead product candidates are KB004, a monoclonal antibody currently in Stage 2 development for myelofibrosis or myelodysplastic syndrome and KB003, a monoclonal antibody in Phase 1 development for chronic myelomonocytic leukemia.