KaloBios Chairman/CEO To Speak On His “Responsible Pricing” Model This Thursday — In Manhattan

Here is the bit, from the press release — if you miss him tomorrow, Friday is also an option, I gather:

…Cameron Durrant, MD, chairman and CEO, will speak at the Pharmaceutical Strategy Conference in New York City September 28-30, 2016. Dr. Durrant will discuss how innovative paradigms, such as the company’s Responsible Pricing Model, can make a transformative impact on two critical issues facing the industry: reputation and pricing.

“The Responsible Pricing Model is a leading commitment to operate in a new way, embedding affordability, transparency and reasonable return into our pricing as we execute our strategy to bring needed medicines to patients,” said Dr. Durrant. “We are pleased to be part of the Pharmaceutical Strategy Conference to connect with like-minded stakeholders and lead real progress for our industry.”

Details of the discussion panels follow:

Title: Industry Image Panel: Confronting Pharma’s Reputation Problem
Date: Thursday, September 29, 2016, 2:00 p.m. EDT
Participants: Dr. Cameron Durrant, KaloBios Pharmaceuticals; Dr. Benjamin Cowen, Milestone Pharmaceuticals; Lucy Abreu, Otsuka Pharmaceutical Companies; Gautam Gupta, Pfizer

Title: Reimbursement / Market Access Focus Panel: The Road To Value-Based Drug Pricing
Date: Friday, September 30, 2016, 9:15 a.m. EDT
Participants: Dr. Edmund Pezalla, Aetna; David Gilman, Huron Consulting; Dr. Cameron Durrant, KaloBios Pharmaceuticals; Nathan Dowden, Rubius Therapeutics; Richard Ascroft, Takeda Pharmaceuticals….

Now you know — but as my commenters have been correctly pointing out — this (even taken along with all the new company’s other new initiatives) may well not be enough, to sustain new KaloBios, longer term.

Finally! The Last — And Latest — Missing SEC Forms 10-Q Have Been Filed, Tonight

KaloBios-SEC-Forms-2016But even before those — here finally is the full Savant agreement, as Exhibit 10.9 to the June 30, 2016 (Q2 2916) SEC Form 10-Q. [Prior to tonight, we only has a summary of the binding LoI — as of March 2016.]

So this is welcome — even if it is partially redacted for some trade secrets, and pricing terms — Huzzah! Here it is, just the same.

I’ll be back with more later tonight, or more likely in the morning, over coffee — after I’ve read through both the March 31 (Q1) and June 30 (Q2) SEC Forms 10-Q.

Happy hunting, one and all!

Board Ups Dr. Durrant’s Compensation, And Mega-Grants A 1,043,022 Share “Founder’s Option”

kalo-new-durrant-09-19-16Updated: good long read — covering the Chagas deal, from the perspective of the CEO of Savant. Do go read it. I think Hurst was snowed by Shkreli, but it all turned out okay in the end: Shkreli got perp walked, and bounced.

Additional update: I will cross post the very cogent comments below, by PathoPhila, related to the story above, on the Shkreli sub-site.

[End, updated portion.]

First, don’t misunderstand: the newly disclosed agreement for Dr. Durrant, along with his over a million share incentive stock option — vesting in 12 equal  quarterly (not monthly — thanks, Anon. commenter below!) installments, beginning in December 2016, makes sound business sense. It is not out-sized in any sense, given the risks he takes, by trying to bring that ever-elusive PVR to New KaloBios, via the Savant Chagas partnership. [The related SEC Form 4, on it is here.]
It was also disclosed that Morgan Lam will move to chief science officer, from chief commercial officer.

Now, we wait for the current Forms 10-Q, which are required to disclose the full text of Dr. Durrant’s new agreement, and change of control provisions.

The SEC Form 8-K filed overnight contains only the running text summary, below:

Designation of Morgan Lam as Chief Scientific Officer

On September 13, 2016, the Board of Directors (the “Board”) of KaloBios Pharmaceuticals, Inc. (the “Company”) appointed Morgan Lam, formerly the Chief Operating Officer of the Company, as the Company’s  Chief Scientific Officer.  The change in Mr. Lam’s position was in recognition of Mr. Lam’s role in the Company’s scientific efforts in pursuit of its product candidates.
Employment Agreement with Dr. Durrant
KaloBios-PathoPhilia-Chagas-2016Also on September 13, 2016, the Company entered into a new employment agreement with Cameron Durrant, MD, the Company’s chairman and chief executive officer (the “Agreement”).  The Agreement provides for an initial annual base salary for Dr. Durrant of $600,000 as well as eligibility for an annual bonus targeted at 60% of his salary based on the achievements of objectives set and agreed to by the Board. For 2016, Dr. Durrant’s bonus opportunity will be pro-rated for the period commencing July 1, 2016 and ending on December 31, 2016. Dr. Durrant is entitled to participate in the Company’s benefit plans available to other executives, including its retirement plan and health and welfare programs. The Agreement also provides for an award of stock options to purchase 1,043,022 shares of the Company’s common stock, which option was granted on September 13, 2016.  Dr. Durrant’s option will vest and become exercisable in 12 equal quarterly installments beginning on December 13, 2016. 
Under the Agreement, Dr. Durrant is entitled to receive certain benefits upon termination of employment under certain circumstances.  If the Company terminates Dr. Durrant’s employment for any reason other than “Cause”, or if Dr. Durrant resigns for “Good Reason” (each as defined in the Agreement), Dr. Durrant will receive twelve months of base salary then in effect and the amount of the actual bonus earned by Dr. Durrant under the agreement for the year prior to the year of termination, pro-rated based on the portion of the year Dr. Durrant was employed by the Company during the year of termination.
KaloBios-SEC-Forms-2016The Agreement additionally provides that if Dr. Durrant resigns for Good Reason or the Company or its successor terminates his employment within the three month period prior to and the 12 month period following a Change in Control (as defined in the Agreement), the Company must pay or cause it successor to pay Dr. Durrant a lump sum cash payment equal to two times (a) his annual salary as of the day before his resignation or termination plus (b) the aggregate bonus received by Dr. Durrant for the year preceding the Change in Control or, if no bonus had been received, at minimum 50% of the target bonus.  In addition, upon such a resignation or termination, all outstanding stock options held by Dr. Durrant will immediately vest and become exercisable….

So now we wait, again. Three Q’s will soon be overdue. Two already are. Onward — Namaste.

Mr. Shkreli Was Alluding To… The $2.58 Million He Owes Tom Koestler, Ph.D. — In His Tweet This Morning: I’ll Betcha’ A Dollar!

sgp-mrk-koestler-10-2013In comments below, Pathophila, Billy and I have been playing a parlor game, about who Mr. Shkreli is complaining about — this day, in his inane Twitter feed. It is an off-topic time waster — and we are mostly just laughing at Mr. Shkreli’s shallow pharma-cretin persona.

But, in a fit of hubris, myself — I am putting up a new post, to declare that I’ve sleuthed it all out! [Sarcasm clearly intended, here.]

I am now all but certain his complaint — about greedy employees — actually refers  to a consultant he hired at Retrophin, circa 2011 -2012.

That particular consultant (as my legacy 2012-2013 graphic at right will attest) is personally well-known to me: his name is Thomas P. Koestler, the former “R&D science guy” — at legacy Schering-Plough, under “Fast” Fred Hassan. [Yes — that would be the same CEO Fred Hassan that both Martin Shkreli and Brent Saunders have repeatedly claimed to have learned their respective pharma marketing tradecrafts, from.]

Although I do not think Dr. Koestler is a particularly stand up guy, given how closely I followed his shenanigans at (and after) legacy Schering-Plough, I don’t doubt that the documents Mr. Shkreli signed with him — as an advisor to what became the Retrophin we know today — are genuine. And Dr. Koestler won at arbitration.

You see, we have learned just today, that Dr. Koestler has NOW sued Mr. Shkreli, in the US District Court, for the Southern District of New York — because Mr. Shkreli has defaulted on a Summer 2016 arbitration award payable to Koestler — in excess of $2.5 million, with interest clocking day by day. Here is the full PDF of the court filing, just made available to the public this afternoon. From page 4, then — a bit:

…The total awarded Dr. Koestler including reimbursement and pre-judgment interest would be $2,587,260.35 (assuming the matter is resolved on October 1, 2016 and no additional pre-judgment interest has accrued)….

Dr. Koestler has made efforts to collect on the amounts described in the Final Award….

August 31, 2016 has come and gone and Dr. Koestler has not received a transfer of any shares from Mr. Shkreli (nor has Dr. Koestler received any payment of any kind from Mr. Shkreli)….

Shkreli-Sealed-Mayo-Jar-2016It all adds to Mr. Shkreli’s liquidity troubles, as in rather short order, I predict that the able federal judge in Manhattan will allow Mr. Shkreli’s remaining bank accounts to be attached, and his assets inside the apartment (including the coveted Enigma machine and the Wu-Tang Clan album!) to be seized, and sold — if Mr. Shkreli cannot raise the needed cash — around $2.58 million of it — to pay Dr. Koestler’s arbitration award.

Pop the popcorn — even if this is (strictly speaking) off topic — for a KaloBios blog, post reorganization.



WAY Off-Topic — But So “In Character” — Or More Precisely… His Lack Thereof.

kalobios-sick-martin-shkreli-2016I was a skeptic. But as of September 11, 2016, in the afternoon — I now completely agree with Dr. Martin’s medical opinion — as long as Mr. Shkreli feels free to diagnose Mrs. Clinton, without benefit of a medical degree or even physical access to examine her — I am confident agreeing with PathoPhilia: Mr. Shkreli needs psychological help. His family, and his criminal lawyer, ought to stage an intervention. He has simply lost touch with any reality most Americans experience — and value.

There are millions of potential jurors (are you reading this Mr. Brafman?) in the Tri-Borough area — being treated to his truly repugnant behavior day after day — from his own video feeds. The jury should not take his obvious lack of character into account (unless he decides to take the stand and testify, on his own behalf — and then his “character” comes in, only as to matters of his own credibility), when he is on trial for eight counts of felony criminal securities fraud — but you can be sure (and Mr. Brafman well knows) they will. Let’s listen in, to the weekend editor at Esquire mag:

Pharmaceutical scumbag Martin Shkreli took his trolling to the streets and is trying to glom onto the media’s frenzied reaction to Hillary Clinton leaving the 9/11 ceremony early. Shkreli is Periscoping from outside Chelsea Clinton’s apartment, where Clinton was taken when she left the ceremony.

According to CNN’s Dan Merica, Shkreli shouted, “Why are you so sick?” to Clinton as she left.


And even though Clinton has long since departed for her home in Chappaqua, NY, Shkreli is still lingering at a nearby restaurant and broadcasting on Periscope….

This move makes perfect sense for Shkreli, who loves nothing more than capitalizing on other people’s misfortune….

pathophilia-logo-newThat. Is. All. Simply. Beyond. Stunning.

All that said, I know that no form of psychological help will work, unless he genuinely wants to get help — to get better. And I see zero evidence of that. [My comment boxes are full below, courtesy of Billy and PathoPhila, of examples of his truly repugnant tweets.] Onward, anyway.

In Which Now-Mega-Pharma CEO Brenton Saunders Essentially Adopts Dr. Durrant’s Model — Without Crediting Him

kalobios-compared-to-allergan-saunders-09-06-2016My, my… but how the world is changing. The very likely 45th President of the United States announces a 21st Century version of the Presidential/ Executive actions both President Johnson, and President Nixon took in the late 1960s and early 1970s — then called “wage and price” freezes — to combat inflation… and even the serial price-gouger [and would-be un-American tax cheat — a la the aborted Pfizer merger/inversion(!)] Brent Saunders gets “some religion“. [Click image to embiggify.]

Hilarious. I have long followed Mr. Saunders, from his days learning at the foot of Fred Hassan (who by the way, is also the man one Martin Shkreli has repeatedly called his “marketing” mentor, in pharma). Now yet another Fred Hassan protegé is facing heat over pricing. Maybe he’d do better to explicitly credit Dr. Durrant for this latest idea. [I’ve watched Mr. Saunders rise from a mid-level VP at Pharmacia to an EVP at Schering-Plough, to a de facto CEO at Bausch & Lomb, to CEO at then badly beleaguered Forest Labs — and then to be CEO of Actavis and now to… Allergan. Whew.]

KaloBios-New-2016In any event, here is FiercePharma‘s fairly breathless piece on it all, this morning. I read it as nothing more than a recognition that Mr. Shkreli and Mylan, more recently, have made federal drug price regulation an increasingly likely outcome of the 2016 Presidential cycle. And a quote:

…Allergan CEO Brent Saunders has made plenty of pronouncements during his tenure: His company is a “growth pharma,” never a “Big Pharma.” 

But today, he released his most dramatic decree yet.

“We will limit price increases,” Saunders promised in his CEO blog Tuesday, becoming the first chief executive of a major drugmaker to do so. When prices do rise, they’ll go up only once a year, and “they will be limited to single-digit percentage increases.”

mrk-mylan-shkreli-hrc-2017At a time when some drugmakers are under fire for hikes of 100%, 200%, 400% or more, that’s a significant promise. The EpiPen scandal, burning strong for more than two weeks now, has Mylan scrambling to make up for a 400% increase in price since 2009, and it’s just the latest in a string of notorious price increases, from Valeant Pharmaceuticals, to Turing Pharmaceuticals and more. The drug-pricing scrutiny has analysts wondering which company’s big price increase will catch fire next.

Big Pharma companies have themselves decried these price hikes, blaming “bad actors” that aren’t part of the innovative pharma crowd. Mainstream drugmakers spend big sums on research to develop life-saving or life-changing therapies whose prices are justified by their benefits, they say….

I honestly wish to genuinely, and unconditionally, applaud Dr. Cameron Durrant — his stand was one of principle, not pure devil’s calculus necessity.

So — here’s to you, Doctor!