KaloBios submits request to appeal Nasdaq delisting

Martin Shkreli (C), chief executive officer of Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc, departs U.S. Federal Court after an arraignment following his being charged in a federal indictment filed in Brooklyn relating to his management of hedge fund MSMB Capital Management and biopharmaceutical company Retrophin Inc. in New York December 17, 2015. REUTERS/Lucas Jackson

(Reuters) - KaloBios Pharmaceuticals Inc, which fired its controversial Chief Executive Martin Shkreli earlier this month, said it had requested an appeal of Nasdaq’s decision to delist its shares.

The embattled drugmaker said last week it had been notified by Nasdaq that its stock would be delisted using the exchange operator’s “discretionary” authority.

A hearing on the appeal has been scheduled for Feb. 25, the company said on Tuesday.

KaloBios on Monday said two directors - Tom Fernandez and Marek Biestekhad - had resigned in the wake of Shkreli’s arrest for alleged securities fraud.

Shkreli gained notoriety after dramatically raising the price of a drug used to treat a dangerous parasitic infection when he was the CEO of privately held Turing Pharmaceuticals Inc. He stepped down as Turing CEO on Dec. 18.

KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought a 70 percent stake in the company.

Shares of San Francisco, California-based KaloBios have not traded since last Thursday.

Reporting by Natalie Grover in Bengaluru; Editing by Anil D’Silva