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Opinion
Max Nisen

Don't Bet on Shkreli

The company's back from the dead, but its drug is a long shot.

Pharma's favorite villain, Turing Pharmaceuticals founder and CEO Martin Shkreli, has decided that one company isn’t enough and has led a group of investors in buying more than half of KaloBios, a public biotech on the edge of liquidating. Other buyers have poured in since his involvement was first revealed last week. Shares of what was very recently a penny stock were up nearly 5000 percent at one point this week and closed on Tuesday up 1900 percent. But anybody blindly following Shkreli into KaloBios is making a potentially expensive mistake.

Shares are closer to reality after falling more than 50 percent on Tuesday. But even at about $18, they are still amazingly high, considering they were approaching zero just a week ago. Shkreli effectively saved the firm from dissolution. And as its new CEO, he has made the company’s earnings calls appointment listening.