Martin Shkreli Sells Remaining Stake in KaloBios

Martin Shkreli has sold his remaining stake in KaloBios Pharmaceuticals Inc., severing his ties with the company he once led as the small drugmaker seeks to distance itself from its former chief executive.

Mr. Shkreli made the disclosure in a regulatory filing on Monday, reporting to regulators that he sold all shares held by him last week in private transactions, and as a result ceased to be a KaloBios shareholder. He sold roughly 2 million shares at $3.10 each, according to the filing, valuing the stake at roughly $5.9 million.

Scott Vernick, a lawyer representing Mr. Shkreli, said his client is "moving on, and wishes the company the best in the future."

The South San Francisco-based rare disease drugmaker has said Mr. Shkreli held a less than 14% stake in the company. KaloBios shares closed Friday at $3.50.

KaloBios in July said it reached an agreement to limit Mr. Shkreli's shareholder rights as continued attention garnered by Mr. Shkreli, charged in December for matters unrelated to KaloBios, has taken a toll on the pharmaceutical company's efforts to get back on its feet. The agreement included an option for the company to repurchase his shares.

The company filed for bankruptcy protection not long after Mr. Shkreli was arrested, and the firm announced it emerged from chapter 11 in early July. At the time of his arrest, Mr. Shkreli was trying to land the rights to the drug benznidazole.

FBI agents arrested Mr. Shkreli at his Manhattan apartment last year over accusations he misled investors in his hedge funds and looted a publicly traded company to cover losses. Mr. Shkreli denies the criminal charges. He was widely criticized for increasing the price of anti-parasite drug Daraprim by fiftyfold.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

August 29, 2016 09:15 ET (13:15 GMT)

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