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CripesAmighty's avatar

He does shit like this: shortly after acquiring Daraprim via Turing Pharma, Marty engineered a buyout of moribund Kalobio Pharmaceuticals (it's most recent clinical trials failed, and was in the process of 'winding down' operations) with a group of 'investors' in tranches ranging from 40 to 70 cents a share. Heavily shorted, when Marty announced this deal, the belief that he was setting up KBIO as a publicly-traded shell to absorb privately-held Turing, set off the mother of all short-squeezes, rocketing KBIO to $12 a share--leaving those who couldn't close their short positions on the hook for 20 times their original position (if you shorted at .70, you're now obligated to buy those shares at $12 to close your position--so, if you were sitting on a $7000 short, you're now on the hook for $120,000.). And Marty's long stake--roughly $700,000--rocketed to 12 million. Not content ruining the thousands trapped at 12, Marty's 'group' then announced that its shares were no longer available to short, set off the second squeeze, rocketing the price to $50 a share (this is a company with no pipeline and no assets, mind you) leaving those trapped at 12 on the hook all the way up to 50--so now, if you were trapped from .70, you're now $ 500,000 in the hole, and Marty just pocketed 49 million +. In short, Marty ran the most vicious 'engineered short-squeeze' in biotech history, ruining thousands of small investors, while pocketing 50 million from a stake of less than 1 m.

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CripesAmighty's avatar

Where's the bunny?

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