Representatives for the company say that most of their money is being invested, with 60% of its revenue to be spent on research and development.
Shares surged 423% to $10.83 at 12:10 p.m.in NY after skyrocketing to $14.72 earlier in the day.
Shkreli bought about 1.2 million shares of KaloBios for roughly $1.6 million in total, according to a filing with the SEC, giving him more than 50% of the company’s outstanding shares.
He had bought 1.2 million KaloBios shares on Wednesday to raise his total stake to 39 percent.
Turing Pharmaceuticals CEO Martin Shkreli made headlines in September when he increased the price for the drug Daraprim from $13.50 to $750. Turing finished Q3 with a net loss of $14.59 million, just over half of the $27.729 million in net losses reported for the first nine months of this year.
He recently attracted media attention when Democratic Presidential candidates, former Secretary of State Hillary Clinton and Sen.
As for KaloBios, it appears that Shkreli wants to keep this business in operation.
KB003, or lenzilumab, is an anti-GM-CSF mAb that KaloBios is evaluating in oncology indications where GM-CSF may play a key role, such as chronic myelomonocytic leukemia (CMML).
The company has approximately $5 million in cash and will endeavor to file its quarterly results on Form 10-Q as soon as possible.
KaloBios is actually in the process of shuttering its operations and liquidating its assets.
Shkreli will work with the company’s senior management team to ensure the company’s continued operations.
“Our board of directors is prepared to entertain any constructive proposal, which we will act upon promptly”, said Ronald Martell, Executive Chairman of KaloBios. Now that Shkreli controls KaloBios, that study will move forward as planned, he said, expecting to begin enrollment this year. Simple, he needs a stock shell to take his new Turing Pharma company public.
The high value tech IPOs today were much flagged, not least as Square Inc (NYSE:SQ) and Match Group (NASDAQ:MTCH) are coming to the markets at a volatile time for offerings.