Kevin McCoy

USA TODAY

Martin Shkreli has liquidated his stake in KaloBios Pharmaceuticals (KBIO) as the company and the controversial drug industry entrepreneur cut ties nine months after he led investors who gained control of the California-based firm.

The New York City-based businessman widely criticized over a drug price hike at an unrelated company sold more than 1.9 million shares of KaloBios stock in private transactions with investors last week. according to a Securities and Exchange Commission disclosure and a company statement Monday.

The stock sold for roughly $3.10 per share, valuing his shares at more than $5.93 million in all, the disclosures showed. Shkreli in November owned more than 2 million KaloBios shares he bought in open market transactions for more than $3.26 million, according to an SEC filing at the time.

KaloBios shares were up nearly 2.9% at $3.60 Monday afternoon.

The sale came after a July agreement with KaloBios that limited the price Shkreli could get for the stock, barred him from nominating candidates for the company's board of directors and prohibited him and personal affiliates from purchasing any of the firm's stock or assets for two years.

Shkreli could not be reached for comment. Scott Vernick, a lawyer representing him, told The Wall Street Journal that Shkreli, is "moving on, and wishes the company the best in the future."

Cameron Durrant, KaloBios' chairman and CEO, in a formal statement said said the transaction "enhances our flexibility to execute the company's strategy by removing an impediment to progress." The company plans "to swiftly and cost-effectively advance and strengthen our portfolio for neglected and rare diseases, with an interest in pediatric conditions," he said.

The two sides finalized the deal shortly after KaloBios emerged from bankruptcy reorganization, a proceeding that began in December when Shkreli was charged in an unrelated securities fraud indictment in federal district court in New York. He has pleaded not guilty in that case and is scheduled to go to trial in 2017.

Shkreli led an investor group that took control of KaloBios in November. The company ousted him after federal prosecutors accused him of running a Ponzi-like scheme that targeted investors with hedge funds he previously headed, as well as with Retrophin, a biotechnology company that ousted him in 2011, three years after he founded it.

Shkreli, co-defendant likely to seek separate trials in fraud case

Separately, Shkreli became a target of national criticism by health care industry professionals and some 2016 presidential candidates for imposing a 5,000% price hike on Daraprim, a Turing Pharmaceuticals drug used to treat AIDS patients and others with weakened immune systems. He served as Turing's CEO until the fraud indictment prompted his resignation.

Along with defending the Turing price hike, Shkreli last week blamed health insurers for Mylan's decision to increase the price of EpiPen, a life-saving auto-injector for allergy sufferers, by 500% over the last six years. After initially saying it would offer EpiPen discounts, Mylan on Monday said it would offer a less-expensive generic version.

Under fire, Mylan to offer generic EpiPen for 50% less

KaloBios had no involvement in the criminal charges or the Daraprim price hike. However, the company was hit with investor lawsuits that focused in part on the ousted executive. KaloBios also faced de-listing of its stock by the Nasdaq Stock Market, and ultimately sought bankruptcy court protection.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc