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Nov 13 KaloBios Pharmaceuticals Inc is winding down its operations, a week after the drug developer said it was looking at strategic options.
Shares of the company, valued at about $ 3.7 million, slumped 66 percent to 30 cents in after-hours trading on Friday.
The company’s interim Chief Executive Herb Cross said it was highly unlikely that exploring strategic options could generate a viable transaction within the time frame, given the company’s limited cash resources.
San Francisco-based KaloBios said it was discontinuing development of two blood cancer drugs, one of which was in a mid-stage study.
In January, the company had stopped the development of its drug for lung infections in cystic fibrosis patients after the treatment failed a mid-stage study.
The company said it had engaged restructuring firm Brenner Group to help liquidate its assets.
KaloBios said it had repaid its outstanding loan of about $ 6.6 million to MidCap Financial, a secured lender.
Up to Friday’s close of 90 cents, the stock had fallen 94 percent since January. (Reporting by Subrat Patnaik and Rosmi Shaji in Bengaluru; Editing by Anil D’Silva)