Karyopharm Therapeutics(US:KPTI)2025-08-11 11:34Financial Performance - For the three months ended June 30, 2025, product revenue increased by $1.6 million (6%) compared to the same period in 2024, reaching $29.7 million, primarily due to lower 340B discounts[109]. - For the six months ended June 30, 2025, total revenue decreased by $7.97 million (10%) to $67.94 million, with product revenue declining by $3.3 million (6%) compared to the same period in 2024[108]. - The company reported a net loss of $60.7 million for the six months ended June 30, 2025, compared to a net loss of $13.6 million for the same period in 2024[108]. - As of June 30, 2025, the company had an accumulated deficit of $1.6 billion[103]. - The company expects net product revenue to increase in the second half of 2025 due to lower product returns and increased demand[111]. Operating Expenses - Operating expenses for the three months ended June 30, 2025, decreased by 13% to $85.3 million compared to the same period in 2024[108]. - Total operating expenses for the three months ended June 30, 2025 decreased by $8.6 million (12%) compared to the same period in 2024, driven by reductions in research and development and selling, general, and administrative expenses[115]. - Research and development expenses for the three months ended June 30, 2025 decreased by $5.6 million (15%) compared to the same period in 2024, mainly due to a $1.7 million decrease in costs for selinexor in multiple myeloma[118]. - Selling, general and administrative expenses for the three months ended June 30, 2025 decreased by $2.6 million (8%) compared to the same period in 2024, attributed to a reduction in headcount and contractors[121]. - Selling, general and administrative expenses are anticipated to remain stable in the second half of 2025, influenced by ongoing cost reduction initiatives[123]. Cash Flow and Liquidity - Cash, cash equivalents, and investments as of June 30, 2025 totaled $51.7 million, with the company incurring a loss of $60.7 million for the six months ended June 30, 2025[127]. - Net cash used in operating activities for the six months ended June 30, 2025, was $57.7 million, a 30% improvement from $82.2 million in the same period of 2024[129]. - Net cash provided by investing activities decreased by $39.6 million to $33.6 million for the six months ended June 30, 2025, compared to $73.2 million in 2024[130]. - Net cash provided by financing activities dropped significantly by $40.6 million to $0.4 million for the six months ended June 30, 2025, compared to $41.4 million in 2024[131]. - The company expects cash runway to fund operations into January 2026, excluding repayment of the 2025 Notes and minimum liquidity covenant[141]. Future Obligations and Financing - Future obligations include $24.9 million related to the 2025 Notes due by October 15, 2025, and $142.9 million related to the 2029 Notes due by May 2029[144]. - The company entered into refinancing transactions in May 2024, borrowing $100 million to limit indebtedness and provide additional working capital[104]. - The company is exploring potential financing transactions and strategic alternatives, including a possible merger or sale[105]. - The company is exploring potential financing transactions and strategic alternatives, including a merger or sale, to maximize stockholder value[142]. Research and Development - The company is focusing on expanding the use of XPOVIO in its currently approved indications and developing new cancer therapies[102]. - The company plans to report top-line data from its Phase 3 myelofibrosis trial in March 2026[106]. - Research and development expenses are expected to remain relatively consistent in the second half of 2025 as the company continues to invest in ongoing clinical trials[120]. Market Risks - The company is exposed to market risk related to changes in foreign currency exchange rates due to contracts with organizations in Canada, the United Kingdom, and Europe[147]. - Contracts with clinical trial sites outside of the U.S. often involve budgets denominated in foreign currencies, increasing exposure to currency fluctuations[147]. - The company does not currently hedge its foreign currency exchange rate risk, leaving it vulnerable to market volatility[147]. Other Income and Losses - Other income (expense), net for the three months ended June 30, 2025 decreased by $64.8 million compared to the same period in 2024, primarily due to a prior year gain on extinguishment of debt[125]. - The company anticipates significant operating losses in the foreseeable future, raising substantial doubt about its ability to continue as a going concern within one year from the issuance of the financial statements[128]. - The company expects license and other revenue to decrease in the second half of 2025, primarily due to limited reimbursement of development-related expenses from Menarini[114]. - License and other revenue for the three months ended June 30, 2025 decreased by $6.5 million (44%) compared to the same period in 2024, primarily due to $6.0 million of non-recurring license-related revenue recognized in 2024[113].