Karyopharm Therapeutics Inc. (NASDAQ:KPTI) has announced that it is entering a royalty agreement with HealthCare Royalty Partners, boosting KPTI stock.
Karyopharm, a Massachusettes-based pharmaceutical firm, will receive an initial $75 million USD by the end of this month for HCR, and an additional $75 million USD once certain regulatory and commercial milestones have been reached. In return, HCR will receive a tiered royalty in the mid-single digits based on worldwide net revenues of Xpovio and any other future products. Xpovio is a product currently being developed by Kyropharm, which can be used to treat patients with pretreated multiple myeloma. KPTI stock is currently trading up at $11.24.
The approval of Xpovio back in July raised eyebrows in the relevant fields, with one myeloma expert claiming the FDA’s decision was “baffling” and “incorrect” and labeled the drug’s $22,000 USD monthly price tag as “outrageous.” Despite the concerns raised by medical professionals, KPTI stock climbed over 50% following the decision. However, some people believe it could be a sign of a more relaxed attitude by the agency when it comes to patients who are out of options and seeking experimental treatments.
>> YUMA Stock Jumps 80% Following Attack on Saudi Arabian Oil Refinery
Speaking on how today’s royalty agreement allows Karyopharm Therapeutics to further develop the drug from here, CEO Michael Kauffman said, “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.”
Despite the gains made today, KPTI shares tanked back in February after the FDA released a briefing that contradicted Karyopharm’s assertions that selinexor was “well-tolerated” by patients, citing a previous trial of the drug that led to “worse overall survival” and concluded that selinexor “is associated with significant toxicity” and “limited efficacy.” Following this announcement, a lawsuit was filed by Glancy Prongay & Murray LLP on behalf of investors who purchased KPTI stock between March 2017 and February 2019.
While you’re here, check out our pick of penny stocks to watch this month!
Featured Image: DepositPhotos
