With its reserves depleted, a debt payment due in four weeks and its cash runway stretching only into next month, the question for Karyopharm Therapeutics is what’s next and how soon can it happen?
The Massachusetts biopharma laid out its situation on Thursday in reporting its second quarter earnings. While the company is still generating significant revenue from its multiple myeloma treatment Xpovio, it also is hemorrhaging cash.
In the second quarter, Karyopharm reported a loss of $67 million, compared to a $37 million figure a year ago and a $27 million loss in the first quarter of this year. The Q2 loss tallies up to $2.32 per share, compared to a $1.31 figure expected by analysts.
Karyopharm also revealed that it has cash reserves of $65.4 million and a loan payment of $15.8 million due on Sept. 10. If the payment is made without additional financing or a waiver from its lenders, Karyopharm said in its release that it expects it “would fall below its $10.0 million minimum liquidity covenant,” resulting in default.
In a conference call, Karyopharm CEO Richard Paulson said that the company has been in negotiations with its lenders “who have been consistently supportive with us.”
