KaloBios (KBIO) Stock | Beginning of the End

KaloBios logo. (PRNewsFoto/KaloBios)

KaloBios Pharmaceuticals, Inc. (NASDAQ: KBIO)


KBIO stock price Skyrocketed Wednesday evening on news that Turing Pharmaceuticals CEO Martin Shkreli bought 1.2 million shares of KaloBios. KaloBios Shares were bought Monday-Tuesday in the range of 61 cents to $2.43. Last Friday, November 13th, KaloBios said it would wind down its operations and liquidate assets IBD. The current estimate of profit for Shkreli and associates, if he were to sell at the current price, is over 1000%, as he now holds over 29% of the existing shares Yahoo Finance.


Executive Comments

KBIO has confirmed that communications with Turing regarding the direction of the company have initiated following Shkreli’s massive buy.  “We have received communications from Mr. Shkreli informing us of his group’s ownership position, and a proposal to continue the company’s operations,” said Ronald Martell, Executive Chairman of KaloBios. “Our board of directors is prepared to entertain any constructive proposal, which we will act upon promptly. Addressing short-term cash needs is our first priority, and we continue to be open to further dialogue,” he concluded Yahoo Finance.


KBIO Technical Analysis


KBIO gapped up in price and is continuing to climb, approaching $20 in the after-hours session. This represents an $18 increase in the day’s closing price and exceeds the 52 week high of $16, which is a range it has not been traded in since April of 2014. At the current price, it is well above its moving averages.


KaloBios Pharmaceuticals, Inc. Recent Financials

KBIO is estimated to release Q3 results on 11/19/2015.

On 08/10/2015 KaloBios released 2nd quarter financial results:

Net loss for the quarter ended June 30, 2015 was $6.0 million or $1.46 per common share, as compared to $9.8 million or $2.38 per common share for the same period in 2014. All per-share amounts have been adjusted to reflect the impact of the one-for-eight reverse stock split effected in July 2015, as previously announced.

Research and development (R&D) expenses were $3.3 million for the quarter ended June 30, 2015, as compared to $6.7 million for the same quarter in 2014. The decrease in R&D expense was primarily due to decreased clinical trial activity compared with the prior period, largely as a result of the completion of the KB001-A Phase 2 study targeting Pseudomonas lung infections in cystic fibrosis patients in the first quarter of 2014. General and administrative (G&A) expenses were $2.3 million for the second quarter of 2015, compared to $2.8 million for the second quarter of 2014. The decrease in G&A expenses was primarily due to reduced employee-related costs as a result of restructuring activities undertaken in the first quarter of 2015 KBIO.


Company Profile

KaloBios Pharmaceuticals, Inc., a biopharmaceutical company, develops monoclonal antibody therapeutics for the treatment of cancer in the United States. The company’s product candidates include KB004, which is in a Phase II clinical trial for the treatment of myelodysplastic syndrome and myelofibrosis; and KB003 that completed Phase II clinical trial to treat chronic myelomonocytic leukemia, an orphan oncology indication. KaloBios Pharmaceuticals, Inc. was founded in 2000 and is headquartered in South San Francisco, California Yahoo Finance.