KaloBios Pharmaceutical Inc. fired its much-hated CEO Martin Shkreli on Monday following his arrest last week on charges of securities fraud, among other transgressions.
Shkreli also resigned from the board of directors, the drugmaker announced, three days after the controversial executive resigned as CEO of Turing Pharmaceuticals on Friday.
“Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said.
The 32-year-old executive became the center of a national firestorm after it was revealed he was gouging prices on a decades-old drug Daraprim from $13.50 to $750 per pill in September as CEO of a different company, Turing.
The life-saving drug is crucial for unborn babies and patients with weak immune systems, including HIV and cancer.
KaloBios hasn’t traded since last Thursday; it halted activity right after Shkreli’s arrest.