Summary
- The stock of Karyopharm Therapeutics has seen an approximate 20% pullback in recent weeks but reported solid Q4 results Thursday.
- We take a look at fourth-quarter numbers and the company's near-term catalysts.
- An update to our investment thesis on Karyopharm Therapeutics follows in the paragraphs below.
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Don't let schooling interfere with your education."- Mark Twain
Busted IPO Forum model portfolio holding Karyopharm Therapeutics (KPTI) reported Q4 results late this week. This report shows the company continues to make impressive progress with its initial rollout with recently approved XPOVIO. The results might have gotten a bit overlooked by the market as we saw a torrent of fourth-quarter reports this week. However, this progress should not go unnoticed so we will take a deeper look at Karyopharm's fourth quarter and what is ahead for this intriguing 'Tier 3' biopharma concern in the paragraphs below.
Company Overview:
Karyopharm Therapeutics is focused on creating novel, first-in-class drugs directed against nuclear transport and related targets for the treatment of cancer and other diseases. The company received approval for Selinexor in July of this year for the treatment of Quadruple Refractory Multiple Myeloma. Selinexor's brand name is XPOVIO. This compound is the first and only nuclear export inhibitor approved in the US and is indicated in combination with dexamethasone for patients with heavily pretreated multiple myeloma.
The company is based just outside of Boston and currently has a market cap of approximately $975 million and trades just above $15.00 a share.
The company posted a loss of 76 cents a share in the fourth quarter, slightly below the consensus. More importantly, revenues came in at $18.1 million which was almost $2 million above expectations. $17.7 million of revenue came directly from XPOVIO which has generated $30.5 million in sales since its commercial launch last July.
As can be seen above, Karyopharm is making steady and solid progress ramping up XPOVIO sales, given the commercial launch of the product came in the second week of July. Revenues increased 38% from those in the third quarter and prescription demand grew by 65%. It should be noted that approximately $3 million in XPOVIO sales in the third quarter went towards building initial channel inventory at the company's distribution partners.
