Page 107 - CL Armchair Case
P. 107
penny stock in the first half of the month, by the end of the
month investors were acting as traditional bulls and bears
as they fought it out.
KaloBios had recently acquired the license for benznidazole,
a standard treatment for Chagas, a deadly parasitic infection
most common in South and Central America. The firm
announced plans to increase the cost from a couple of
hundred dollars for two months to a pricing structure like
that for hepatitis- C drugs, which can run to nearly $100,000
for 12 weeks.
By mid-December, KaloBios’s stock was around $30. After
Shkreli’s arrest, however, the stock lost more than half its
value.
On December 29, 2015, KaloBios filed for Chapter 11
bankruptcy. This followed NASDAQ delisting its shares
