KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) was a massive mover during Friday’s trading session. The stock surged by close to 31% on the back of above average volumes. It is important to state that the stock has been in a strong uptrend ever since it broke above the long term resistance zone at $5.09. The stock currently trades above all daily moving averages, which is a bullish sign. The MACD oscillators is currently trending higher in the bullish zone and show no signs of a reversal. Traders believe the stock could head to levels of $48 in the near term.
In a recent public statement, KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) announced that the leading pharmaceutical company Turing Pharmaceuticals AG had bought 70% of its outstanding common shares. As per the reports, Turing Pharmaceutical’s CEO and Founder, Martin Shkreli was named the chairman of the board and new CEO of KaloBios.
Insights Of The Matter
As part of this role, the primary objective of Shkreli will be to ensure that all of its operations could continue without any hassle. Apart from him, quite a few other people have been appointed to company’s board. Reports claim that right after the resignation of previous directors of the board, KaloBios appointed three new board directors – David Moradi, Marek Biestek and Tony Chase. The tenure of old directors wasn’t increased by the company.
Although everything looks very simple from the edge, KaloBios has taken into consideration various strategic moves. All the new appointees, including Mr. Shkreli, are committed to offering an equity contribution of about $3 million, subject to shareholder approval.
Apart from this, Shkreli and his investor group Turing Pharmaceuticals AG are committed to providing an equity financing facility of $10 million, subject to shareholder approval.
During a recent PC, Martin Shkreli said that he and his investor group had faith in the lenzilumab treatment candidate manufactured by KaloBios. According to him, it could easily treat some of the most dangerous and uncured diseases in a hassle-free manner.
KaloBios looks forward to starting further trials regarding lenzilumab in a few months time. If everything goes fine, it will start the formal production, marketing, sales and distribution activities, so that maximum people can get benefitted from it. At present, it has about $5 million in terms o cash and cash equivalents. Once free from the trial and other formalities, it will file quarterly results as soon as possible.
Mr. Shkreli will continue as the CEO of Turing Pharmaceuticals post this deal.