One of Martin Shkreli’s former companies has emerged from Chapter 11 bankruptcy and is pledging to ditch its notorious ex-chief’s price hike plans for a rare disease drug.
California-based biotech KaloBios KBIO 0.00% was teetering on the edge of financial ruin last year before Shkreli gave it a $1.6 million jolt to stave off its collapse. He was named KaloBios’ CEO for his troubles but was fired about a month later, in December 2015, shortly after his arrest on wire and security fraud charges.
Shkreli—whose bombastic style and affinity for stirring the pot has earned him the derisive “pharma bro” moniker—no longer has “any sort of formal relationship” with the company and has a diminishing financial stake in it, current KaloBios CEO Cameron Durrant stressed in an interview with Fortune on Friday. Durrant added that Shkreli’s modus operandi of acquiring (and then raising the price of) niche products with few competitors in order to corner certain therapeutic markets will not persist. “We are looking to price based on the principles of access, affordability, and a reasonable return on our investment.”
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