Karyopharm Seeks Chapter 11 Protection and Up to $55 Million in Financing
Key Facts
Karyopharm Therapeutics announced on November 2, 2026, that it had entered into a restructuring support agreement with its lenders, bondholders and other stakeholders. The agreement provides for Ayrmid to merge with a reorganized Karyopharm entity. The company filed voluntary petitions for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Texas to implement the transaction through a restructuring plan. The company said the plan includes up to $55 million in debtor-in-possession financing from its existing secured lenders. The financing remains subject to court approval.
Chapter 11 allows the company to pursue the proposed restructuring under court supervision, while the process is not limited to the Ayrmid transaction. Karyopharm said it will seek court approval for bidding procedures that would allow other parties to submit competing bids for its assets. Ayrmid will serve as the stalking horse bidder in the court-supervised sale process. The proposed merger therefore remains part of a process that could receive alternative bids. The company expects to complete the transaction in the first quarter of 2027, subject to the conditions set out in the Chapter 11 plan.
The move follows Karyopharm’s warning in a September filing with the Securities and Exchange Commission about its limited available liquidity. It said its liquidity and projected cash flows would fund its operating plans through October 15, 2026, assuming the forbearance agreement remained in effect through that date. It added that without additional financing or a strategic transaction extending its liquidity beyond October 15, it might be unable to continue as a going concern. In the same filing, the company said it did not make a scheduled principal payment of approximately $15.8 million on September 10. It said the missed payment constituted an event of default under the loan agreement.
Debt data disclosed by the company on September 10 showed approximately $129.0 million in outstanding term-loan principal. Outstanding principal on the 2028 notes was also $15.6 million, while principal on the 2029 notes was approximately $108.0 million. The company said creditors had agreed under the forbearance agreement to temporarily refrain from exercising certain rights related to events of default. On results, Karyopharm reported total revenue of $146.1 million in 2025, compared with $145.2 million in 2024. Its net loss widened to $196.0 million in 2025 from $76.4 million the previous year.
U.S. net sales of XPOVIO totaled $114.9 million in 2025, compared with $112.8 million in 2024. The company said demand for the treatment remained consistent across the two years in a competitive multiple myeloma treatment market. Chief Executive Richard Paulson had said the process provides “a clear framework for pursuing a transaction that maximizes value for stakeholders,” while continuing to develop treatments for multiple myeloma and myelofibrosis. The company said it would continue its ordinary operations during the process, focusing on treatment programs for both diseases. It also noted that its common stock is expected to be delisted from the Nasdaq Global Select Market.
KPTI shares closed at $0.662 on October 30, 2026, the latest closing price included in the data available here. No closing price for the day the Chapter 11 petitions were announced was included. The previous draft’s statement that Rodman downgraded the stock to Neutral is not confirmed by the available rating data. That data indicates Rodman & Renshaw initiated coverage of the stock with a Buy rating on March 10, 2026. The company’s next step is to seek court approval for the bidding procedures, while the expected completion of the transaction in the first quarter of 2027 remains subject to the conditions of the Chapter 11 plan.