KaloBios Pharmaceuticals, Inc. (NASDAQ: KBIO)
KaloBios Pharmaceuticals, Inc. (KBIO), a biopharmaceutical company on Thursday announced that an investor group led by Martin Shkreli, founder of Turing Pharmaceuticals, has purchased 70% of its outstanding shares. KBIO has appointed Martin Shkreli as the new CEO, and announced David Moradi, Tony Chase, and Marek Biestek have been elected to the Board of Directors. The former directors have all resigned their positions. KBIO has received a commitment from Mr. Shkreli of an equity investment of $3 million, and an additional $10 million to an equity financing facility. Mr. Shkreli is famous for his controversial move of acquiring the drug Daraprim and then raising the price from $13.50 per pill to $750.
KaloBios Pharmaceuticals, Inc.
Martin Shkreli, Chief Executive Officer, said,
“We believe that the KaloBios’ lenzilumab is a very promising candidate for the treatment of various rare and orphan diseases. This monoclonal antibody neutralizes soluble granulocyte-macrophage colony stimulating factor (GM-CSF), a central actor in leukocyte differentiation, autoimmunity and inflammation. Lenzilumab has particular promise in Chronic Myelomonocytic Leukemia (CMML), a disease with no FDA-approved treatment options and a 3-year overall survival rate of 20%.” KalaBios Website
KBIO Technical Analysis
KBIO gapped up in price on Friday to $14.00, up from the prior day’s close of $10.40, which is a 35% increase on the favorable news. Taking a look at the daily chart, we can see the last time KBIO traded above this price level was on January 6th, when it closed at $14.64. One week ago KBIO was trading at $0.90, that is a 1,455% increase in price. The 52 week high price for the stock is $16.00 which I expect will be tested with this huge spike up. KBIO has a low float of 3.84 million shares and is trading over 6 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. KBIO did reach pre market highs of $14.94, but gave back $0.94 at the open, or equivalent to 6%. For trading purposes, my entry point would have been $14.10, with a possible add on at the pre market highs of $14.94 looking for a run to $16. My stop loss would have been $13.90, fearing anything below that and the stock would start to fill in the gap up.
Company Profile
KaloBios Pharmaceuticals, Inc., incorporated on September 19, 2001, is a biopharmaceutical company. The Company is focused on the development of monoclonal antibody therapeutics for diseases that represent a burden to society and to patients and their families. The Company has a portfolio of patient targeted antibodies using its Humaneered antibody technology to treat serious medical conditions. The Company operates through the development of pharmaceutical products segment.
The Company’s principal pharmaceutical product candidates that are advanced to the clinical development stage include: KB004, KB003 and KB001‑A. The Company seeks to identify and develop products that may treat multiple indications through proof of concept studies.
KB004
The Company’s KB004 is a Humaneered anti ‑EphA3 monoclonal antibody that has the potential to offer an approach to treating both hematologic malignancies and solid tumors. KB004 is being developed as a therapeutic for myelodysplastic syndrome and myelofibrosis.
KB003
The Company’s KB004 is a Humaneered anti granulocyte macrophage colony stimulating factor monoclonal antibody. KB004 Reuters
