Business
Karyopharm Enters Into Royalty Agreement with Healthcare Royalty Partners for up to $150 Million
-- Investment Expected to Extend Karyopharm’s Cash Runway into Middle of 2021 -- NEWTON, Mass., Sept. 16, 2019 (GLOBE NEWSWIRE) -- Karyopharm Therapeutics
About this update from Karyopharm Therapeutics Inc.
[{"type":"text","content":"-- Investment Expected to Extend Karyopharm’s Cash Runway into Middle of 2021 --\nNEWTON, Mass., Sept. 16, 2019 (GLOBE NEWSWIRE) -- Karyopharm Therapeutics Inc. (Nasdaq:KPTI), an oncology-focused pharmaceutical company, today announced its entry into a royalty agreement with HealthCare Royalty Partners (HCR) for up to $150 million to support the ongoing development and commercialization of XPOVIOTM (selinexor), the Company’s first-in-class, oral SINE compound, which is currently marketed in the U.S. for the treatment of patients with heavily pretreated multiple myeloma. Selinexor is also in late-stage clinical development for the treatment of patients with relapsed or refractory multiple myeloma who have had one to three prior lines of therapy and for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL).\n Under the terms of the agreement, Karyopharm will receive $75 million at closing this month and is eligible to receive an additional $75 million upon the achievement of future regulatory and commercial milestones and subject to approval by both parties. In exchange for the amount received at the initial closing, HCR will receive a tiered royalty in the mid-single digits based on worldwide net revenues of XPOVIO and any other future products. Karyopharm expects that the $75 million initially received from HCR under this royalty agreement, combined with its existing cash, cash equivalents and investments, together with the cash expected to be generated from product sales, will be sufficient to fund its operations into the middle of 2021. “This non-dilutive financing provides Karyopharm with immediate and substantial capital to support the ongoing commercialization of XPOVIO in patients with heavily pretreated multiple myeloma, and further the development of selinexor in future high unmet need indications,” said Michael G. Kauffman, MD, PhD, Chief Executive Officer of Karyopharm. “We are delighted to have the support and confidence of HealthCare Royalty Partners, a premier partner known for its strategic investments in promising healthcare companies and assets.” Clarke Futch, Managing Partner and Chairman of the Investment Committee of HealthCare Royalty Partners stated: “Based on our extensive due diligence, we believe XPOVIO’s strong commercial prospects and upside potential creates an att...