Karyopharm Therapeutics(US:KPTI)2024-08-06 11:42Revenue Performance - For the three months ended June 30, 2024, net product revenue was $28.032 million, a decrease of 2% from $28.460 million in the same period of 2023[81]. - License and other revenue for the three months ended June 30, 2024, increased by 62% to $14.754 million, compared to $9.119 million in the same period of 2023[81]. - Total revenue for the three months ended June 30, 2024, was $42.786 million, representing a 14% increase from $37.579 million in the same period of 2023[81]. - License and other revenue for the six months ended June 30, 2024 increased by $2.3 million compared to the same period in 2023, primarily due to a $3.3 million increase in reimbursement revenue from Menarini[85]. Net Income and Loss - The company reported a net income of $23.792 million for the three months ended June 30, 2024, compared to a net loss of $32.630 million in the same period of 2023[81]. - The company incurred a loss of $13.6 million for the six months ended June 30, 2024, continuing a trend of recurring losses since inception[96]. Expenses - Research and development expenses for the three months ended June 30, 2024, were $38.371 million, an increase of 22% from $31.477 million in the same period of 2023[81]. - Operating expenses for the three months ended June 30, 2024 were $70.9 million, a 6% increase from $67.2 million in the same period of 2023[87]. - Research and development expenses for the three months ended June 30, 2024 increased by $6.9 million, driven by increased activity in pivotal Phase 3 trials[89]. - Selling, general and administrative expenses for the three months ended June 30, 2024 decreased by $3.4 million to $31.1 million, primarily due to a reduction in headcount[91]. - Total operating expenses for the six months ended June 30, 2024 were $137.8 million, a slight increase of 1% from $136.7 million in the same period of 2023[87]. - The company anticipates that selling, general and administrative expenses will remain relatively consistent in the second half of 2024 compared to the first half[92]. Cash Flow and Financing - As of June 30, 2024, the company had $152.1 million in cash, cash equivalents, and investments, which is expected to fund operations for at least the next twelve months[96]. - Net cash used in operating activities increased by $37.6 million, totaling $(82,223) thousand for the six months ended June 30, 2024, representing an 84% increase compared to the same period in 2023[97]. - Net cash provided by investing activities increased by $84.4 million, totaling $73,202 thousand for the six months ended June 30, 2024, driven by a $60.0 million decrease in investment purchases[98]. - Net cash provided by financing activities increased by $40.1 million, totaling $40,966 thousand for the six months ended June 30, 2024, primarily due to $83.3 million from a new term loan[98]. - The company received $13.0 million in milestone payments under license and distribution agreements during the six months ended June 30, 2024[101]. Future Expectations - The company expects product revenue to slightly increase in the second half of 2024 compared to the first half of 2024[83]. - The company expects license and other revenue to decrease slightly in the second half of 2024 compared to the first half due to reduced reimbursement from Menarini[86]. - The company expects other income (expense), net to decrease in the second half of 2024 due to the non-recurring nature of the $44.7 million gain on extinguishment of debt[95]. - The company anticipates continued reliance on additional financing to achieve its business objectives, as profitability may not be achieved for several years[105]. Debt and Obligations - The company had an accumulated deficit of $1.5 billion as of June 30, 2024[76]. - Future obligations include $25.6 million related to the 2025 Convertible Senior Notes and $150.8 million related to the 2029 Convertible Senior Notes over the next five years[107]. - The company expects to incur total lease costs of $4.8 million from June 30, 2024, to September 30, 2025, for its headquarters in Newton, Massachusetts[106]. Market Risks - The company is exposed to market risks related to interest rates and foreign currency exchange rates, with no current hedging strategies in place[109]. Clinical Development - The company plans to continue clinical trials and seek additional approvals for selinexor in various cancer indications[76]. - The commercialization of XPOVIO is supported by a patient and healthcare provider support program, KaryForward™, and is approved in over 40 countries outside the U.S.[75].