KaloBios Pharmaceuticals Inc (KBIO) On A Tear With Acquisition Rumors and a Possible Short Squeeze


Just a few days ago shares of KaloBios Pharmaceuticals Inc (KBIO) were trading at under $1. Here we are on Black Friday and the share price has exploded by a factor greater than 40. The investment has been a roller coaster ride for anyone who has stuck around, with shares first jumping to $40 in a matter of days before dropping back under $20 on Tuesday.

The recent rise can be attributed to comments made by CEO Martin Shkreli on Bloomberg on Wednesday where he mentioned that his previous company, Turin Pharmaceuticals could acquire KalosBios by the end of this year, and that Turin may have an IPO soon. In addition, Shkeil sent out a Tweet yesterday afternoon letting the market know he would no longer be lending his shares for shorting.

“I spoke with my counsel & advisers and decided to stop lending my $KBIO shares out until I better understand the advantages of doing so,” Shkreli ‘s Tweet stated. “I apologize for any inconvenience this may create in lending markets and I will probably resume lending at some point. Happy Thanksgiving!”

The stock is up 61.92% or $16.49 after the positive news, hitting $43.12 per share. About 439,315 shares traded hands. KBIO has risen 4924.53% since April 24, 2015 and is uptrending. It has outperformed by 4925.65% the S&P500.

The institutional sentiment increased to 0.45 in Q2 2015. Its up 0.04, from 0.41 in 2015Q1. The ratio increased, as 8 funds sold all KaloBios Pharmaceuticals Inc shares owned while 3 reduced positions. 2 funds bought stakes while 3 increased positions. They now own 6.90 million shares or 22.14% less from 8.87 million shares in 2015Q1.

Opus Point Partners Management Llc holds 0.28% of its portfolio in KaloBios Pharmaceuticals Inc for 746,467 shares. Harbourvest Partners Llc owns 57,604 shares or 0.01% of their US portfolio. Moreover, Blair William & Co Il has 0% invested in the company for 53,635 shares. The California-based California Public Employees Retirement System has invested 0% in the stock. Citigroup Inc, a New York-based fund reported 2,745 shares.

KaloBios Pharmaceuticals, Inc. is a biopharmaceutical company. The company has a market cap of $177.82 million. The Firm is focused on the development of monoclonal antibody therapeutics for diseases that represent a burden to society and to patients and their families. It currently has negative earnings. The Firm operates through the development of pharmaceutical products segment.