- The stock of Karyopharm Therapeutics had soared over 60% since we said to 'buy the dip' in an article last month.
- Late stage key trial results just out are a key inflection point and the company just did a secondary offering to advantageously raise additional capital.
- With a rash of upward analyst price target revisions flooding in, we update the investment case around Karyopharm Therapeutics in the paragraphs below.
- I do much more than just articles at The Busted IPO Forum: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »
We are all susceptible to the pull of viral ideas. Like mass hysteria. Or a tune that gets into your head that you keep humming all day until you spread it to someone else. Jokes. Urban legends. Crackpot religions. Marxism. No matter how smart we get, there is always this deep irrational part that makes us potential hosts for self-replicating information." -Neal Stephenson
Today, we are going to take a look at recent events at Busted IPO Forum model portfolio member Karyopharm Therapeutics (KPTI). The stock has soared over the past week even as the overall market has seen a huge spike in volatility. We take a look at the news propelling the shares and update the investment thesis on this small oncology concern in the paragraphs below.
Company Overview
Karyopharm Therapeutics is 'Tier 3' biotech concern based just outside of Boston. The company 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 (whose brand name is Xpovio) in July of last year for the treatment of Quadruple Refractory Multiple Myeloma. Xpovio 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. With the rally in the shares over the past week, the stock sports a market capitalization north of $1.7 billion.
Recent News
The shares jumped on Monday after the company posted positive results from a key Phase 3 clinical trial 'BOSTON'. This study was evaluating the combination of Xpovio, Takeda's (TAK) Velcade (bortezomib) and low-dose dexamethasone in multiple myeloma patients who had received one-to-three prior lines of treatment. The trial met its primary endpoints and the stock shot up as this removed a major potential overhang on the stock.
