KaloBios Pharmaceuticals Inc. plummeted 50 percent Thursday in early trading after the drug company’s Chief Executive Officer Martin Shkreli was arrested in New York Thursday morning on securities fraud charges related to one of his prior companies.
Shkreli bought a majority interest in KaloBios last month and named himself CEO. The company’s stock was trading at less than $1 before he made the move, and the stock subsequently rose to as high as $39.50, giving the company a market value of more than $100 million.
