On Friday KaloBios Pharmaceuticals (KBIO) announced that it was taking the option to liquidate assets, because it could no longer obtain the funding it needed in a relatively short time period. Things have not been going well for the company and now it seems its time for the company to liquidate its assets and close its operations. 

It all started first in early 2014 when Kalobios had failed a phase 2 study for Asthma using the company’s drug known as KB003. Soon thereafter things started to continue to go downhill as Sanofi (SNY) announced that it would terminate its collaboration agreement with the company on its phase 2 cystic Fibrosis drug known as KB001-A. One thing to note is that Sanofi had terminated the partnership before the readout of this phase 2 trial. This was a huge loss for Kalobios as it was expected to earn up to $290 million in milestone payments had the the partnership remained intact and the trial had succeeded. 

Fast forward five months after Sanofi terminated the agreement with Kalobios, and things got worse yet again. That is because Kalobios reported that the phase 2 trial in patients with cystic fibrosis had failed. In a last ditch effort the company attempted to add two new clinical products in the pipeline, both in oncology. 

The company added KB004 which was being used to treat hematological malignancies — cancer that begins in cells of blood forming tissue — and KB003 for Chronic myelomonocytic leukemia — CMML, the former being in a phase 2 clinical study and the latter  in a phase 1 study. Unfortunately, the company was unable to continue its intended targets due to lack of money. Thus, Kalobios is choosing to liquidate its remaining assets. The company has chosen The Brenner group to help liquidate its remaining assets. 

In one year the stock has plunged from its 52 week high of $16.96 to its 52 week low of $0.18 cents in after hours trading on Oct. 13.