NEW YORK — KaloBios, the troubled drugmaker taken over by Martin Shkreli last month, is seeking bankruptcy protection less than two weeks after his arrest for securities fraud.

It is the second pharmaceutical company with ties to the former hedge fund manager now in turmoil following his indictment on charges unrelated to his involvement with them, though the drugmakers are not lacking for problems of their own

The other, Turing Pharmaceuticals Inc., is cutting jobs and seeking a new CEO after Shkreli resigned the position because of his arrest.

Under Shkreli, Turing acquired the rights to a treatment for a rare parasitic infection that mainly strikes pregnant women and raised the price from $13.50 to $750 per pill. That shoved the New York company right into the crosshairs of lawmakers under pressure to do something about soaring drug prices.

An investigation by the Senate Special Committee on Aging is now focused on Turing and three other pharmaceutical companies.

With Shkreli in charge, KaloBios also planned to rack up big profits on a decades-old drug that treats a parasitic infection. The company suggested it might charge tens of thousands of dollars for a round of treatment, although the real prize might have been a government voucher potentially worth hundreds of millions.

When it was revealed in November that Shkreli had acquired a controlling stake in publicly traded KaloBios, a failing drug developer doing research on cancer treatments, its shares soared 20 percent in a day.

Two weeks after he became its CEO, KaloBios agreed to buy the U.S. rights to benznidazole, which is used to treat a parasitic infection called Chagas disease. Benznidazole was never approved in the U.S. because Chagas disease isn’t common here, although the number of cases is growing.

The South San Francisco, California, company said it planned to get quick marketing approval for benznidazole without running costly clinical studies and said it wanted a price tag similar to new hepatitis C drugs that cost around $1,000 per pill, or more than $80,000 for a course of treatment.


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