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Acquisition: KaloBios Acquired
On November 18th 2015 Martin Shkreli’s investor group
made a 1.2 million share purchase for a 70% stake in
KaloBios Pharmaceuticals Inc. KaloBios, a biopharma
company, focused on the development of cancer-fighting
monoclonal antibody therapeutics.
Because so many investors were betting KaloBios was going
to go bankrupt, there was a huge short position in the stock.
The purchase by Shkreli’s group pushed the stock higher,
forcing other investors to buy stock to cover their short
positions, thereby pushing the stock even higher.
Immediately after the acquisition Shkreli was appointed to
the positions of Chief Executive Officer and Chairman of the
Board. It was further announced that David Moradi, Tony
Chase and Marek Biestek had also been elected to the
Board of Directors.
