KaloBios Names Controversial Martin Shkreli As Its New CEO

• Shares of KaloBios Pharmaceuticals Inc (NASDAQ: KBIO) rose more than 400 percent on Thursday after the company announced Martin Shkreli and a group of investors acquired a majority stake in the company.
• KaloBios' stock jumped another 12 percent early Friday morning after the company named Shkreli as CEO and Chairman of the Board.
• Shkreli will work with other members of senior management to "ensure the Company's continued operations."

Shares of KaloBios Pharmaceuticals surged higher by more than 1,000 percent before closing the day at $10.40, up 402.42 percent. Investors and traders were encouraged by the company's announcement that Martin Shkreli led a group of investors and acquired more than 50 percent of the company.

On Friday, KaloBios announced that Shkreli will assume the role of CEO and Chairman of the Board, marking a complete reversal from the company's announcement earlier this month it will cease operations.

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According to KaloBios' press release, Shkreli will work with senior management to ensure "the Company's continued operations." The press release noted that Shkreli, along with the group of investors, now own 70 percent of the company's outstanding shares.

Shkreli has also made a commitment for an equity investment of at least $3 million and an equity financing facility of $10 million.

"We believe that the KaloBios' lenzilumab is a very promising candidate for the treatment of various rare and orphan diseases," Shkreli said. "This monoclonal antibody neutralizes soluble granulocyte-macrophage colony stimulating factor (GM-CSF), a central actor in leukocyte differentiation, autoimmunity and inflammation. Lenzilumab has particular promise in Chronic Myelomonocytic Leukemia (CMML), a disease with no FDA-approved treatment options and a 3-year overall survival rate of 20 percent."

Last month, Shkreli became "the most hated man on the Internet" after he acquired a drug called Daraprim and raised its price to $750 a pill from $13.50.