10-Q 1 kpti-20220930.htm 10-Q 10-Q
Q30001503802false--12-310001503802us-gaap:FairValueInputsLevel3Memberkpti:DeferredRoyaltyObligationMember2022-09-300001503802us-gaap:HealthCareOtherMember2022-07-012022-09-300001503802us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001503802us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-3000015038022021-12-310001503802kpti:TwoThousandTwentyTwoEquityIncentivePlanMember2022-05-190001503802kpti:RoyaltyDueOnDecemberThirtyOneTwoThousandTwentyTwoMemberkpti:RevenueInterestFinancingAgreementMemberkpti:HealthcareRoyaltyPartnersIvLpMember2022-09-300001503802kpti:LicenseAndOtherMember2021-01-012021-09-300001503802us-gaap:ProductMember2021-07-012021-09-300001503802us-gaap:CommonStockMember2020-12-310001503802us-gaap:FairValueInputsLevel3Member2022-09-300001503802us-gaap:FairValueInputsLevel2Member2021-12-310001503802kpti:ShortTermInvestmentsCorporateDebtSecuritiesMember2022-09-300001503802us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300001503802kpti:LicenseAndAssetPurchaseAgreementsMember2022-01-012022-09-300001503802us-gaap:CommonStockMemberkpti:OpenMarketSaleAgreementMember2022-01-012022-09-300001503802kpti:ShortTermInvestmentsCommercialPaperMember2021-12-310001503802us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-07-012022-09-300001503802us-gaap:FairValueInputsLevel2Memberkpti:ShortTermInvestmentsUsGovernmentAgenciesDebtSecuritiesMember2021-12-310001503802kpti:AntengeneTherapeuticsLimitedMemberus-gaap:LicenseAndServiceMember2021-01-012021-09-300001503802us-gaap:CommercialPaperMember2022-09-300001503802kpti:MenariniLicenseAgreementMemberus-gaap:LicenseAndServiceMember2021-07-012021-09-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2018-10-160001503802us-gaap:RetainedEarningsMember2021-01-012021-09-300001503802us-gaap:RetainedEarningsMember2022-06-3000015038022021-06-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001503802us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001503802us-gaap:LicenseAndServiceMember2022-01-012022-09-300001503802us-gaap:ShortTermInvestmentsMemberus-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2021-01-012021-12-310001503802kpti:RevenueInterestFinancingAgreementMember2022-09-300001503802us-gaap:ProductMember2021-01-012021-09-300001503802us-gaap:LicenseAndServiceMemberus-gaap:OtherCurrentAssetsMember2021-12-312021-12-310001503802kpti:JefferiesLLCMemberus-gaap:CommonStockMemberkpti:OpenMarketSaleAgreementMember2022-07-012022-09-300001503802us-gaap:DomesticCorporateDebtSecuritiesMember2022-09-300001503802kpti:RevenueInterestFinancingAgreementMemberkpti:HealthcareRoyaltyPartnersIvLpMemberkpti:RoyaltyDueOnDecemberThirtyOneTwoThousandTwentyFourMember2022-09-300001503802kpti:ShortTermInvestmentsUsGovernmentAgenciesDebtSecuritiesMember2021-12-310001503802us-gaap:ProductMember2021-12-310001503802kpti:RevenueInterestAgreementAndAmendedRevenueInterestAgreementMember2022-09-300001503802us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2022-09-300001503802us-gaap:RetainedEarningsMember2020-12-310001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2021-12-310001503802us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001503802us-gaap:CommonStockMember2021-12-310001503802us-gaap:OtherAssetsMemberus-gaap:LicenseAndServiceMember2021-12-312021-12-310001503802kpti:ShortTermInvestmentsCorporateDebtSecuritiesMember2021-12-310001503802us-gaap:MoneyMarketFundsMember2021-12-310001503802us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001503802us-gaap:CommonStockMember2022-09-3000015038022022-06-300001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2022-07-012022-09-300001503802kpti:HealthcareRoyaltyPartnersIvLpMemberkpti:RevenueInterestAgreementAndAmendedRevenueInterestAgreementMember2022-09-300001503802us-gaap:MoneyMarketFundsMember2022-09-300001503802us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001503802us-gaap:FairValueInputsLevel1Member2021-12-310001503802us-gaap:AdditionalPaidInCapitalMember2022-09-300001503802us-gaap:RetainedEarningsMember2021-07-012021-09-300001503802us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300001503802us-gaap:AdditionalPaidInCapitalMember2021-09-300001503802kpti:XpovioMember2022-01-012022-09-300001503802us-gaap:RetainedEarningsMember2021-12-310001503802us-gaap:DomesticCorporateDebtSecuritiesMember2021-12-310001503802kpti:LicenseAndOtherMember2021-07-012021-09-300001503802us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001503802us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2022-09-300001503802us-gaap:FairValueInputsLevel2Memberkpti:ShortTermInvestmentsCorporateDebtSecuritiesMember2021-12-310001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001503802us-gaap:FairValueInputsLevel3Memberkpti:DeferredRoyaltyObligationMember2021-12-310001503802us-gaap:CommonStockMember2022-07-012022-09-300001503802us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-12-310001503802us-gaap:RetainedEarningsMember2021-09-300001503802us-gaap:RoyaltyMemberkpti:AntengeneTherapeuticsLimitedMember2022-01-012022-09-300001503802us-gaap:CommonStockMember2022-06-300001503802us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-01-012022-09-3000015038022022-10-280001503802us-gaap:AdditionalPaidInCapitalMember2021-06-300001503802kpti:AntengeneTherapeuticsLimitedMemberus-gaap:RoyaltyMember2021-01-012021-09-300001503802us-gaap:LicenseAndServiceMemberus-gaap:OtherCurrentAssetsMember2022-09-302022-09-300001503802us-gaap:RetainedEarningsMember2022-07-012022-09-300001503802us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-12-310001503802kpti:AntengeneTherapeuticsLimitedMember2021-07-012021-09-300001503802us-gaap:FairValueInputsLevel2Memberkpti:ShortTermInvestmentsCorporateDebtSecuritiesMember2022-09-300001503802us-gaap:ProductMember2022-01-012022-09-300001503802kpti:RevenueInterestFinancingAgreementMember2019-09-012019-09-300001503802srt:MaximumMemberkpti:JefferiesLLCMemberkpti:OpenMarketSaleAgreementMember2018-08-170001503802us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001503802us-gaap:HealthCareOtherMember2021-07-012021-09-300001503802us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2021-01-012021-12-3100015038022021-07-012021-09-300001503802srt:MaximumMemberkpti:JefferiesLLCMemberkpti:OpenMarketSaleAgreementMember2022-01-012022-09-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001503802us-gaap:CommonStockMember2021-01-012021-09-300001503802kpti:AntengeneTherapeuticsLimitedMember2021-01-012021-09-300001503802kpti:AntengeneTherapeuticsLimitedMemberus-gaap:LicenseAndServiceMember2022-01-012022-09-300001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2021-01-012021-09-300001503802us-gaap:RoyaltyMemberkpti:AntengeneTherapeuticsLimitedMember2022-07-012022-09-300001503802kpti:AntengeneTherapeuticsLimitedMember2022-01-012022-09-300001503802us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2021-12-310001503802us-gaap:StockOptionMember2021-01-012021-09-3000015038022022-01-012022-09-300001503802us-gaap:RetainedEarningsMember2021-06-300001503802us-gaap:RoyaltyMemberkpti:AntengeneTherapeuticsLimitedMember2021-07-012021-09-300001503802us-gaap:AdditionalPaidInCapitalMember2022-06-300001503802us-gaap:StockOptionMember2022-01-012022-09-300001503802us-gaap:CommercialPaperMember2021-12-310001503802us-gaap:ShortTermInvestmentsMemberus-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2022-01-012022-09-300001503802us-gaap:AdditionalPaidInCapitalMember2020-12-310001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2021-07-012021-09-300001503802us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2021-12-310001503802us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-01-012022-09-300001503802us-gaap:CostOfSalesMember2022-07-012022-09-300001503802us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2021-12-310001503802us-gaap:ConvertibleDebtMember2022-09-300001503802us-gaap:CommonStockMember2021-09-300001503802us-gaap:FairValueInputsLevel2Memberkpti:ShortTermInvestmentsCommercialPaperMember2022-09-300001503802us-gaap:CommonStockMember2021-06-300001503802kpti:MenariniLicenseAgreementMemberus-gaap:LicenseAndServiceMember2021-01-012021-09-300001503802us-gaap:CorporateDebtSecuritiesMember2022-09-300001503802kpti:JefferiesLLCMemberus-gaap:CommonStockMemberkpti:OpenMarketSaleAgreementMember2021-01-012021-09-300001503802kpti:ShortTermInvestmentsUsGovernmentAgenciesDebtSecuritiesMember2022-09-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001503802kpti:RevenueInterestAgreementAndAmendedRevenueInterestAgreementMember2022-01-012022-09-300001503802srt:MaximumMemberkpti:JefferiesLLCMemberkpti:OpenMarketSaleAgreementMember2020-05-050001503802us-gaap:CostOfSalesMember2022-01-012022-09-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001503802kpti:RoyaltyDueOnSeptemberThirtyTwoThousandTwentySixMemberkpti:RevenueInterestFinancingAgreementMemberkpti:HealthcareRoyaltyPartnersIvLpMember2022-09-300001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2022-01-012022-09-300001503802kpti:MenariniLicenseAgreementMember2022-07-012022-09-3000015038022021-01-012021-12-310001503802us-gaap:FairValueInputsLevel3Member2021-12-3100015038022022-09-300001503802us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-09-300001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMembersrt:ScenarioForecastMember2022-10-152022-10-150001503802us-gaap:ProductMember2022-09-300001503802us-gaap:ConvertibleDebtMember2022-01-012022-09-3000015038022021-01-012021-09-300001503802us-gaap:HealthCareOtherMember2022-01-012022-09-300001503802us-gaap:DomesticCorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2021-01-012021-12-310001503802us-gaap:CommonStockMember2022-01-012022-09-300001503802us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-3000015038022021-09-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001503802us-gaap:AdditionalPaidInCapitalMember2021-12-3100015038022020-12-310001503802us-gaap:RetainedEarningsMember2022-01-012022-09-300001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2018-10-260001503802kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember2022-09-300001503802us-gaap:CostOfSalesMember2021-01-012021-09-300001503802us-gaap:CorporateDebtSecuritiesMember2021-12-310001503802us-gaap:FairValueInputsLevel2Memberkpti:ShortTermInvestmentsCommercialPaperMember2021-12-310001503802kpti:HealthcareRoyaltyPartnersIvLpMemberkpti:AmendedRevenueInterestAgreementMemberkpti:RoyaltyDueOnDecemberThirtyOneTwoThousandTwentyFourMember2022-09-300001503802srt:MaximumMemberkpti:JefferiesLLCMemberkpti:OpenMarketSaleAgreementMember2020-05-040001503802us-gaap:FairValueInputsLevel1Member2022-09-300001503802kpti:MenariniLicenseAgreementMember2022-01-012022-09-300001503802us-gaap:CommonStockMember2021-07-012021-09-300001503802us-gaap:FairValueInputsLevel2Member2022-09-300001503802kpti:AntengeneTherapeuticsLimitedMemberus-gaap:LicenseAndServiceMember2021-07-012021-09-300001503802kpti:AntengeneTherapeuticsLimitedMemberus-gaap:LicenseAndServiceMember2022-07-012022-09-300001503802kpti:JefferiesLLCMemberus-gaap:CommonStockMemberkpti:OpenMarketSaleAgreementMember2022-01-012022-09-300001503802srt:MaximumMemberkpti:TwoThousandTwentyTwoEquityIncentivePlanMember2022-05-190001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001503802kpti:MenariniLicenseAgreementMemberus-gaap:LicenseAndServiceMember2022-07-012022-09-300001503802kpti:LicenseAndOtherMember2022-07-012022-09-300001503802us-gaap:CostOfSalesMember2021-07-012021-09-300001503802kpti:RevenueInterestAgreementAndAmendedRevenueInterestAgreementMember2021-01-012021-12-310001503802us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-09-300001503802kpti:JefferiesLLCMemberkpti:OpenMarketSaleAgreementMemberus-gaap:CommonStockMember2021-07-012021-09-300001503802us-gaap:ProductMember2022-07-012022-09-300001503802kpti:LicenseAndOtherMember2022-01-012022-09-300001503802us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001503802us-gaap:HealthCareOtherMember2021-01-012021-09-300001503802kpti:ShortTermInvestmentsCommercialPaperMember2022-09-300001503802kpti:AmendedRevenueInterestAgreementMember2022-01-012022-09-300001503802us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001503802us-gaap:FairValueInputsLevel2Memberkpti:ShortTermInvestmentsUsGovernmentAgenciesDebtSecuritiesMember2022-09-300001503802us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-09-300001503802kpti:MenariniLicenseAgreementMemberus-gaap:LicenseAndServiceMember2022-01-012022-09-3000015038022022-07-012022-09-300001503802us-gaap:RetainedEarningsMember2022-09-300001503802us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-09-30xbrli:purexbrli:shareskpti:Securityiso4217:USDxbrli:sharesutr:Diso4217:USD

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2022

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

Commission file number: 001-36167

 

Karyopharm Therapeutics Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

26-3931704

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

 

 

85 Wells Avenue, 2nd Floor

Newton, MA

 

02459

(Address of principal executive offices)

 

(Zip Code)

 

(617) 658-0600

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.0001 par value

 

KPTI

 

Nasdaq Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of October 28, 2022, there were 81,155,026 shares of Common Stock, $0.0001 par value per share, outstanding.

 

 

 


Table of Contents

TABLE OF CONTENTS

 

 

 

PART I - FINANCIAL INFORMATION

 

3

 

 

 

 

 

Item 1.

 

Condensed Consolidated Financial Statements (Unaudited)

 

3

 

 

Condensed Consolidated Balance Sheets

 

3

 

 

Condensed Consolidated Statements of Operations

 

4

 

 

Condensed Consolidated Statements of Comprehensive Loss

 

5

 

 

Condensed Consolidated Statements of Cash Flows

 

6

 

 

Condensed Consolidated Statements of Stockholders’ Deficit

 

7

 

 

Notes to Condensed Consolidated Financial Statements

 

8

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

17

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

25

Item 4.

 

Controls and Procedures

 

25

 

 

 

 

 

 

 

PART II - OTHER INFORMATION

 

26

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

26

Item 1A.

 

Risk Factors

 

26

Item 6.

 

Exhibits

 

67

 

 

Signatures

 

68

 

2


Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited).

KARYOPHARM THERAPEUTICS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except per share amounts)

 

 

 

September 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

71,351

 

 

$

190,459

 

Investments

 

 

77,030

 

 

 

38,156

 

Accounts receivable, net

 

 

27,446

 

 

 

22,497

 

Inventory

 

 

4,249

 

 

 

4,106

 

Prepaid expenses

 

 

10,053

 

 

 

12,511

 

Other current assets

 

 

31,468

 

 

 

1,528

 

Restricted cash

 

 

1,080

 

 

 

6,349

 

Total current assets

 

 

222,677

 

 

 

275,606

 

Property and equipment, net

 

 

1,252

 

 

 

1,642

 

Operating lease right-of-use assets

 

 

6,681

 

 

 

7,915

 

Other assets

 

 

 

 

 

19,505

 

Restricted cash

 

 

626

 

 

 

637

 

Total assets

 

$

231,236

 

 

$

305,305

 

Liabilities and stockholders’ deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

813

 

 

$

1,603

 

Accrued expenses

 

 

55,716

 

 

 

69,121

 

Operating lease liabilities

 

 

2,770

 

 

 

2,316

 

Other current liabilities

 

 

2,462

 

 

 

678

 

Total current liabilities

 

 

61,761

 

 

 

73,718

 

Convertible senior notes

 

 

169,894

 

 

 

169,293

 

Deferred royalty obligation

 

 

132,998

 

 

 

132,998

 

Operating lease liabilities, net of current portion

 

 

6,863

 

 

 

8,969

 

Total liabilities

 

 

371,516

 

 

 

384,978

 

Stockholders’ deficit:

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 5,000 shares authorized; none issued and
   outstanding

 

 

 

 

 

 

Common stock, $0.0001 par value; 200,000 shares authorized; 81,027 and 75,746 shares issued and outstanding at September 30, 2022 and December 31, 2021,
   respectively

 

 

8

 

 

 

8

 

Additional paid-in capital

 

 

1,165,897

 

 

 

1,098,776

 

Accumulated other comprehensive (loss) income

 

 

(752

)

 

 

191

 

Accumulated deficit

 

 

(1,305,433

)

 

 

(1,178,648

)

Total stockholders’ deficit

 

 

(140,280

)

 

 

(79,673

)

Total liabilities and stockholders’ deficit

 

$

231,236

 

 

$

305,305

 

 

See accompanying notes to condensed consolidated financial statements.

3


Table of Contents

KARYOPHARM THERAPEUTICS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share amounts)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue, net

 

$

32,009

 

 

$

26,723

 

 

$

89,319

 

 

$

68,633

 

License and other revenue

 

 

4,136

 

 

 

10,966

 

 

 

34,175

 

 

 

14,917

 

Total revenues

 

 

36,145

 

 

 

37,689

 

 

 

123,494

 

 

 

83,550

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

980

 

 

 

589

 

 

 

3,345

 

 

 

2,660

 

Research and development

 

 

31,359

 

 

 

45,808

 

 

 

117,730

 

 

 

116,839

 

Selling, general and administrative

 

 

34,645

 

 

 

35,104

 

 

 

110,752

 

 

 

109,284

 

Total operating expenses

 

 

66,984

 

 

 

81,501

 

 

 

231,827

 

 

 

228,783

 

Loss from operations

 

 

(30,839

)

 

 

(43,812

)

 

 

(108,333

)

 

 

(145,233

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

658

 

 

 

98

 

 

 

1,025

 

 

 

527

 

Interest expense

 

 

(6,114

)

 

 

(8,010

)

 

 

(19,111

)

 

 

(18,106

)

Other income (expense), net

 

 

16

 

 

 

18

 

 

 

(70

)

 

 

393

 

Total other expense, net

 

 

(5,440

)

 

 

(7,894

)

 

 

(18,156

)

 

 

(17,186

)

Loss before income taxes

 

 

(36,279

)

 

 

(51,706

)

 

 

(126,489

)

 

 

(162,419

)

Income tax provision

 

 

(45

)

 

 

(106

)

 

 

(296

)

 

 

(389

)

Net loss

 

$

(36,324

)

 

$

(51,812

)

 

$

(126,785

)

 

$

(162,808

)

Net loss per share—basic and diluted

 

$

(0.45

)

 

$

(0.69

)

 

$

(1.60

)

 

$

(2.17

)

Weighted-average number of common shares outstanding used to
    compute net loss per share—basic and diluted

 

 

80,210

 

 

 

75,461

 

 

 

79,153

 

 

 

75,065

 

 

See accompanying notes to condensed consolidated financial statements.

4


Table of Contents

KARYOPHARM THERAPEUTICS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited)

(in thousands)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net loss

 

$

(36,324

)

 

$

(51,812

)

 

$

(126,785

)

 

$

(162,808

)

Other comprehensive (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on investments

 

 

(145

)

 

 

(67

)

 

 

(329

)

 

 

(240

)

Foreign currency translation adjustment

 

 

(69

)

 

 

243

 

 

 

(614

)

 

 

94

 

Comprehensive loss

 

$

(36,538

)

 

$

(51,636

)

 

$

(127,728

)

 

$

(162,954

)

 

See accompanying notes to condensed consolidated financial statements.

5


Table of Contents

KARYOPHARM THERAPEUTICS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

 

 

Nine Months Ended
September 30,

 

 

 

2022

 

 

2021

 

Operating activities

 

 

 

 

 

 

Net loss

 

$

(126,785

)

 

$

(162,808

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Acquired in-process research and development

 

 

 

 

 

7,355

 

Depreciation

 

 

508

 

 

 

650

 

Net amortization of premiums and discounts on investments

 

 

(361

)

 

 

1,422

 

Amortization of debt issuance costs

 

 

602

 

 

 

581

 

Stock-based compensation expense

 

 

29,226

 

 

 

22,914

 

Change in fair value of embedded derivative liability

 

 

 

 

 

(610

)

Other

 

 

(3

)

 

 

71

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(4,949

)

 

 

(5,871

)

Inventory

 

 

(143

)

 

 

(1,385

)

Prepaid expenses and other assets

 

 

(7,977

)

 

 

(2,987

)

Operating lease right-of-use assets

 

 

1,234

 

 

 

1,066

 

Accounts payable

 

 

(790

)

 

 

(3,569

)

Accrued expenses and other liabilities

 

 

(11,621

)

 

 

12,283

 

Deferred revenue

 

 

 

 

 

(297

)

Operating lease liabilities

 

 

(1,652

)

 

 

(1,406

)

Net cash used in operating activities

 

 

(122,711

)

 

 

(132,591

)

Investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(118

)

 

 

(5

)

Proceeds from sales and maturities of investments

 

 

90,078

 

 

 

162,303

 

Purchases of investments

 

 

(128,918

)

 

 

(45,228

)

Acquired in-process research and development

 

 

 

 

 

(6,000

)

Net cash (used in) provided by investing activities

 

 

(38,958

)

 

 

111,070

 

Financing activities

 

 

 

 

 

 

Proceeds from issuance of common stock, net of issuance costs

 

 

35,082

 

 

 

9,903

 

Proceeds from the exercise of stock options and shares issued under employee
   stock purchase plan

 

 

2,813

 

 

 

2,849

 

Proceeds from Amended Revenue Interest Agreement

 

 

 

 

 

60,000

 

Net cash provided by financing activities

 

 

37,895

 

 

 

72,752

 

Effect of exchange rate on cash, cash equivalents and restricted cash

 

 

(614

)

 

 

87

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(124,388

)

 

 

51,318

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

197,445

 

 

 

89,121

 

Cash, cash equivalents and restricted cash at end of period

 

$

73,057

 

 

$

140,439

 

Reconciliation of cash, cash equivalents and restricted cash reported within the
   condensed consolidated balance sheets

 

 

 

 

 

 

Cash and cash equivalents

 

$

71,351

 

 

$

137,400

 

Short-term restricted cash

 

 

1,080

 

 

 

2,400

 

Long-term restricted cash

 

 

626

 

 

 

639

 

Total cash, cash equivalents and restricted cash

 

$

73,057

 

 

$

140,439

 

Supplemental disclosures:

 

 

 

 

 

 

Cash paid for interest on convertible debt

 

$

2,588

 

 

$

2,588

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

2,523

 

 

$

2,444

 

Cash paid for interest on deferred royalty obligation

 

$

24,960

 

 

$

5,650

 

 

See accompanying notes to condensed consolidated financial statements.

6


Table of Contents

KARYOPHARM THERAPEUTICS INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(unaudited)

(in thousands)

 

 

 

Common Shares

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Other
Comprehensive (Loss)
Income

 

 

Accumulated
Deficit

 

 

Total
Stockholders’
(Deficit) Equity

 

 

 

Shares

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2022

 

 

79,798

 

 

$

8

 

 

$

1,153,301

 

 

$

(538

)

 

$

(1,269,109

)

 

$

(116,338

)

Vesting of restricted stock

 

 

171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options and shares issued under the employee stock purchase plan

 

 

7

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

11

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

6,797

 

 

 

 

 

 

 

 

 

6,797

 

Issuance of common stock, net of issuance costs

 

 

1,051

 

 

 

 

 

 

5,788

 

 

 

 

 

 

 

 

 

5,788

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(145

)

 

 

 

 

 

(145

)

Foreign currency cumulative translation adjustment

 

 

 

 

 

 

 

 

 

 

 

(69

)

 

 

 

 

 

(69

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(36,324

)

 

 

(36,324

)

Balance at September 30, 2022

 

 

81,027

 

 

$

8

 

 

$

1,165,897

 

 

$

(752

)

 

$

(1,305,433

)

 

$

(140,280

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2021

 

 

75,334

 

 

$

8

 

 

$

1,082,220

 

 

$

196

 

 

$

(1,165,556

)

 

$

(83,132

)

Vesting of restricted stock

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options and shares issued under the employee stock purchase plan

 

 

3

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

16

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

7,420

 

 

 

 

 

 

 

 

 

7,420

 

Issuance of common stock for asset purchase

 

 

150

 

 

 

 

 

 

1,355

 

 

 

 

 

 

 

 

 

1,355

 

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

(67