Karyopharm Therapeutics Inc (NASDAQ:KPTI) stock plunged 17% after the pharmaceutical company revealed that its efforts to secure additional financing have been unsuccessful so far, raising concerns about its financial stability.
The company disclosed that despite confidential discussions with potential new and existing investors, no financing transaction has materialized. Karyopharm’s board is now evaluating strategic alternatives including a potential merger or sale of the company, debt restructuring, or refinancing options.
In a move to extend its cash runway, Karyopharm announced it is reducing its workforce by approximately 20%, marking another step in the company’s ongoing management of operating expenses. The company stated that one-time expenses related to these layoffs are expected to be immaterial.
Despite these challenges, Karyopharm affirmed its commitment to leveraging its multiple myeloma commercial organization and advancing its Phase 3 clinical trials in myelofibrosis and endometrial cancer.
The company had been providing confidential information to potential investors under confidentiality agreements, with an obligation to publicly disclose this information by July 14, 2025. Karyopharm noted it does not intend to provide further updates unless its board approves a specific transaction or determines additional disclosure is appropriate.
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