NEW YORK -- Shares of cancer drug developer KaloBios Pharmaceuticals (KBIO) are skyrocketing after executive Martin Shkreli of Turing Pharmaceuticals took a majority stake in the company.
KaloBios shares surged to $11.87 after the company said an investor group including Shkreli had acquired most of its stock. The shares closed at $2.07 Wednesday.
Shkreli is a former hedge fund manager and the head of privately-held Turing Pharmaceuticals. Turing was criticized in September for buying the rights to a parasitic infection drug called Daraprim, then raising its price more than 5,000 percent.
KaloBios doesn't have any approved drugs. In January a drug it was developing to treat lung infections failed in clinical testing. This month it said it would eliminate most of its jobs, and on Friday it said it would wind down operations.