University of California at Davis and Moffitt Cancer Center in Florida Suspends Trial of Drug to be Funded by KaloBios Drug Following CEO’s Arrest

University of California at Davis and Moffitt Cancer Center in Florida Suspends Trial of Drug to be Funded by KaloBios Drug Following CEO’s ArrestA clinical trial which was to be funded by KaloBios Pharmaceuticals Inc. has been suspended by the University of California at Davis and Moffitt Cancer Center in Florida as the pharma company's CEO Martin Shkreli was arrested on Thursday on charges of securities fraud.

A spokeswoman from the centre, Patricia Kim said, said on Saturday via an e-mail, Moffitt has suspended the clinical trial that was to be funded by KaloBios for an indefinite period "pending the outcome of the investigation of KaloBios' CEO."

According to spokeswoman Dorsey Griffith's e-mail from UC Davis, its suspension will remain in effect "pending further analysis." The drug in question which was to be tested, known as KB003, is being developed to treat one form of leukemia.

On Thursday morning, Shkreli, was arrested in New York on charges of securities fraud that's connected to one of his earlier companies, Retrophin Inc.

On Friday, shares of KaloBios dropped fifty three percent before the day's trading ended. Shkreli has been criticized earlier for his stance of raising the price of a key drug but this case is not related to it.

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