Martin Shkreli Sells All His Shares in Kalobios Pharmaceuticals Inc (KBIO)

Item 1.

Security and Issuer.

This Amendment No. 1 to the Schedule 13D relates to the common stock, par value $0.001 per share (the Common Stock), of KaloBios Pharmaceuticals, Inc. (the Issuer) and is being filed to amend the Schedule 13D filed with the Securities and Exchange Commission November 25, 2015 (the Schedule 13D).  This Amendment No. 1 is the final amendment to the Schedule 13D and is an exit filing.

Except as specifically provided herein, this Amendment No. 1 does not modify any of the information previously reported on the Schedule 13D.  Capitalized terms used but not defined in this Amendment No. 1 shall have the respective meetings set forth with respect thereto in the Schedule 13D.

Item 3.

Source and Amount of Funds or Other Consideration.

Item 3 of the Schedule 13D is hereby amended by adding the following information after the final paragraph:

As of August 26, 2016, Mr. Shkreli ceased to beneficially own any shares of Common Stock (as described in Item 4).

Item 4.

Purpose of Transaction.

Item 4 of the Schedule 13D is hereby amended by adding the following immediately after the final paragraph:

Mr. Shkreli sold all shares of Common Stock held by him on August 25, 2016 and August 26, 2016 in private transactions and as a result ceased to be a stockholder of the Issuer.

Item 5.

Interest in Securities of the Issuer.

Parts (a), (b), (c) and (e) of Item 5 of the Schedule 13D are hereby amended and restated in their entirety as follows:

(a) Mr. Shkreli beneficially owns 0 shares of Common Stock of the Issuer, representing 0.0% of the Issuers outstanding Common Stock.

(c) On August 25, 2016 and August 26, 2016, Mr. Shkreli sold all 1,913,206 shares of Common Stock of the Issuer that he then beneficially owned at a purchase price per share of $3.10, in private transactions.

(e) Mr. Shkreli ceased to be a beneficial owner of more than five percent (5%) of the outstanding Common Stock of the Issuer on August 25, 2016.