KaloBios Pharmaceuticals emerges from bankruptcy

KaloBios Pharmaceuticals has emerged from bankruptcy, the company said Friday. The former Martin Shkreli-led company also said that it had acquired the rights to develop benznidazole from Savant Neglected Diseases for $3 million.

Benznidazole is a drug that helps treat Chagas disease, an infectious disease that affects 6 million to 7 million people worldwide. It is mainly found in Latin America.

KaloBios filed for bankruptcy last December shortly after Shkreli was fired as its CEO after being arrested for alleged fraud charges that were unrelated to his brief time at KaloBios. He has denied the allegations.

Shkreli best known for boosting the price of lifesaving drug  Daraprim to $750 from $13.50  while he was the CEO of Turing Pharmaceuticals. 

Shkreli still owns 47% of KaloBios, but the two sides reached an agreement earlier this month to limit how much of a role he still has in the company. He can no longer nominate candidates for the company's board, acquire more stock for two years and agreed to vote with the majority position on significant issues.

Under the KaloBios bankruptcy plan the company would also shrink Shkreli's ownership down to 14% by issuing new shares. The biopharmaceutical company can also buy back Shkreli's shares at a discount.

KaloBios rose 11% to $5 in late-morning trading.

Follow Eli Blumenthal on Twitter @eliblumenthal