KaloBios Files for Bankruptcy Following Shkreli Arrest

Less than two weeks after the arrest of its newly minted CEO on seven counts of securities and wire fraud, KaloBios Pharmaceuticals has filed for Chapter 11 bankruptcy protection.

KaloBios also has fired the embattled Martin Shkreli, who became CEO in November. He was arrested Dec. 17 for allegedly defrauding investors at a former hedge fund and a pharmaceutical company he previously headed.

KaloBios’ move comes in the wake of its appeal of a Nasdaq decision to delist the South San Francisco-based biotech. A hearing on the appeal has been scheduled for Feb. 25.