Pharmaceuticals giant KalosBios files for bankruptcy after firing "pharma bro" Martin Shkreli as chief executive

Emma Haslett
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Shkreli was ousted as KalosBios chief executive earlier this month

KalosBios, the company which ousted self-styled "pharma bro" Martin Shkreli as its chief executive earlier this month after he was arrested on charges of securities fraud, has filed for Chapter 11 bankruptcy.

Reuters reported that the US pharma giant had listed assets and liabilities of between $1m and $10m in its filing with a court in Delaware.

It's been a quick fall from grace for the company, which named Shkreli its chief executive in November, after he and a group of investors bought a 70 per cent stake.

After his arrest, shares in KalosBios fell more than 50 per cent, causing it to suspend trading of its stock last Thursday.

On Monday two of its directors, Tom Fernandez and Marek Biestekhad, stepped down.

Shkreli was arrested as part of an investigation into a "Ponzi-like scheme" at Retrophin, the previous company he founded, and MSMB capital.

He rose to notoriety in November after he raised the price of the treatment for a parasitic disease by more than 5,000 per cent.

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