Shares of a tiny drug company called KaloBios Pharmaceuticals Inc. KBIO -5.09% were halted after losing more than half their value in premarket trading after the company’s high-profile chief executive, Martin Shkreli, was arrested by the FBI.
The pharma boss who became infamous after hiking the price of an HIV-related drug by 5,000 percent was arrested Thursday by the FBI, prosecutors said, accusing him of orchestrating a “trifecta of lies, deceit and greed.”
The take down of Martin Shkreli — a hedge fund manager-turned-pharmaceutical company CEO — comes amid a probe related to “widespread” securities fraud through a hedge fund and drug company he once ran, according to a complaint filed by federal regulators.
UPDATE: Nasdaq put out a statement at 10:41 a.m. Eastern time saying KaloBios trading was halted at 6:48 a.m. and that it had asked for “additional information” from the company. It listed the last price for the shares at $23.59, which didn’t reflect the pre-market action. The exchange said trading will remain halted “until KaloBios Pharmaceuticals, Inc. has fully satisfied Nasdaq’s request for additional information.”