10-Q
October 15, 20256January 31,2020June 30,2019false2019Q2--12-310001503802MANASDAQRepresents capitalization of operating lease right-of-use assets, offset by reclassification of deferred rent and tenant incentives to operating lease right-of-use assets.Represents reclassification of deferred rent and tenant incentives to operating lease right-of-use assets.Represents recognition of operating lease liabilities. 0001503802 2019-01-01 2019-06-30 0001503802 2019-06-30 0001503802 2018-12-31 0001503802 2019-04-01 2019-06-30 0001503802 2018-04-01 2018-06-30 0001503802 2018-01-01 2018-06-30 0001503802 2019-01-01 0001503802 2018-06-30 0001503802 2019-07-31 0001503802 2019-03-31 0001503802 2018-03-31 0001503802 2017-12-31 0001503802 kpti:OpenMarketSaleAgreementMember 2019-01-01 2019-06-30 0001503802 kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2019-01-01 2019-06-30 0001503802 us-gaap:StockOptionMember 2019-01-01 2019-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001503802 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001503802 kpti:PerformanceBasedRestrictedStockUnitsMember 2019-01-01 2019-06-30 0001503802 kpti:EmployeeStockPurchasePlanMember 2019-01-01 2019-06-30 0001503802 kpti:AniviveLifesciencesMember us-gaap:LicenseAgreementTermsMember kpti:TechnologyTransferMember 2019-01-01 2019-06-30 0001503802 kpti:EmployeeAndNonEmployeeStockOptionMember 2019-01-01 2019-06-30 0001503802 kpti:OnoPharmaceuticalCompanyLimitedMember us-gaap:LicenseAgreementTermsMember 2019-01-01 2019-06-30 0001503802 us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001503802 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001503802 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001503802 us-gaap:LicenseAgreementTermsMember kpti:AntengeneTherapeuticsLimitedMember 2019-01-01 2019-06-30 0001503802 kpti:TwoThousandThirteenStockOptionPlanMember us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember srt:MinimumMember 2019-01-01 2019-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember srt:MaximumMember 2019-01-01 2019-06-30 0001503802 srt:MaximumMember kpti:JefferiesLLCMember kpti:OpenMarketSaleAgreementMember 2019-01-01 2019-06-30 0001503802 kpti:CommonAreaMaintenanceMember 2019-01-01 2019-06-30 0001503802 kpti:AntengeneTherapeuticsLimitedMember 2019-01-01 2019-06-30 0001503802 country:DE 2019-01-01 2019-06-30 0001503802 country:IL 2019-01-01 2019-06-30 0001503802 kpti:AniviveLifesciencesMember us-gaap:LicenseAgreementTermsMember 2019-01-01 2019-06-30 0001503802 us-gaap:StockOptionMember 2018-04-01 2018-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-06-30 0001503802 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001503802 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001503802 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001503802 kpti:EmployeeAndNonEmployeeStockOptionMember 2018-01-01 2018-12-31 0001503802 kpti:PerformanceBasedRestrictedStockUnitsMember 2018-07-01 2018-07-31 0001503802 kpti:AssetPurchaseAgreementMember kpti:BiogenMAIncMember 2018-01-24 2018-01-24 0001503802 kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember srt:ScenarioForecastMember 2022-10-15 2022-10-15 0001503802 kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2018-10-16 2018-10-16 0001503802 us-gaap:ConvertibleDebtMember 2018-10-16 2018-10-16 0001503802 kpti:OnoPharmaceuticalCompanyLimitedMember us-gaap:LicenseAgreementTermsMember srt:MaximumMember kpti:DevelopmentGoalsMember 2017-10-11 2017-10-11 0001503802 kpti:OnoPharmaceuticalCompanyLimitedMember us-gaap:LicenseAgreementTermsMember kpti:SalesEventsMember srt:MaximumMember 2017-10-11 2017-10-11 0001503802 us-gaap:LicenseAgreementTermsMember kpti:AniviveLifesciencesMember srt:MaximumMember 2017-04-28 2017-04-28 0001503802 us-gaap:LicenseAgreementTermsMember kpti:AniviveLifesciencesMember kpti:ClinicalDevelopmentAndRegulatoryMilestoneMember 2017-04-28 2017-04-28 0001503802 us-gaap:LicenseAgreementTermsMember kpti:AniviveLifesciencesMember kpti:SalesEventsMember 2017-04-28 2017-04-28 0001503802 us-gaap:LicenseAgreementTermsMember kpti:SalesEventsMember srt:MaximumMember kpti:AntengeneTherapeuticsLimitedMember 2018-05-23 2018-05-23 0001503802 kpti:AntengeneTherapeuticsLimitedMember us-gaap:LicenseAgreementTermsMember kpti:DevelopmentGoalsMember srt:MaximumMember 2018-05-23 2018-05-23 0001503802 us-gaap:CommonStockMember 2018-05-07 2018-05-07 0001503802 srt:RestatementAdjustmentMember 2019-01-01 0001503802 srt:ScenarioPreviouslyReportedMember 2019-01-01 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:DomesticCorporateDebtSecuritiesMember 2018-12-31 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2018-12-31 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:CertificatesOfDepositMember 2018-12-31 0001503802 kpti:LongTermInvestmentsMember us-gaap:DomesticCorporateDebtSecuritiesMember 2018-12-31 0001503802 us-gaap:AccountingStandardsUpdate201602Member 2018-12-31 0001503802 us-gaap:MoneyMarketFundsMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2018-12-31 0001503802 us-gaap:DomesticCorporateDebtSecuritiesMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:DomesticCorporateDebtSecuritiesMember 2018-12-31 0001503802 us-gaap:CommercialPaperMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0001503802 us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:CertificatesOfDepositMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:DomesticCorporateDebtSecuritiesMember kpti:LongTermInvestmentsMember 2018-12-31 0001503802 us-gaap:FairValueInputsLevel1Member 2018-12-31 0001503802 us-gaap:FairValueInputsLevel2Member 2018-12-31 0001503802 kpti:EmployeeAndNonEmployeeStockOptionMember 2018-12-31 0001503802 kpti:AssetPurchaseAgreementMember us-gaap:ScenarioPlanMember srt:MaximumMember kpti:SalesMilestoneMember kpti:BiogenMAIncMember 2018-01-24 0001503802 kpti:AssetPurchaseAgreementMember kpti:BiogenMAIncMember 2018-01-24 0001503802 kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2018-10-26 0001503802 kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2018-10-16 0001503802 us-gaap:ConvertibleDebtMember 2018-10-16 0001503802 us-gaap:UpFrontPaymentArrangementMember us-gaap:LicenseAgreementTermsMember kpti:OnoPharmaceuticalCompanyLimitedMember 2017-10-11 0001503802 us-gaap:UpFrontPaymentArrangementMember us-gaap:LicenseAgreementTermsMember kpti:AniviveLifesciencesMember 2017-04-28 0001503802 srt:MaximumMember kpti:JefferiesLLCMember kpti:OpenMarketSaleAgreementMember 2018-08-17 0001503802 us-gaap:UpFrontPaymentArrangementMember us-gaap:LicenseAgreementTermsMember kpti:AntengeneTherapeuticsLimitedMember 2018-05-23 0001503802 us-gaap:LicenseAgreementTermsMember kpti:DevelopmentMilestoneMember srt:MaximumMember us-gaap:ScenarioPlanMember kpti:AntengeneTherapeuticsLimitedMember 2018-05-23 0001503802 kpti:AntengeneTherapeuticsLimitedMember us-gaap:LicenseAgreementTermsMember kpti:SalesEventsMember srt:MaximumMember 2018-05-23 0001503802 us-gaap:CommonStockMember 2018-05-07 0001503802 kpti:OfficeAndResearchSpaceLeaseMember 2019-06-30 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:CertificatesOfDepositMember 2019-06-30 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:DomesticCorporateDebtSecuritiesMember 2019-06-30 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember 2019-06-30 0001503802 us-gaap:ShortTermInvestmentsMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-06-30 0001503802 us-gaap:AccountingStandardsUpdate201602Member 2019-06-30 0001503802 us-gaap:UpFrontPaymentArrangementMember kpti:AntengeneTherapeuticsLimitedMember 2019-06-30 0001503802 us-gaap:UpFrontPaymentArrangementMember us-gaap:LicenseAgreementTermsMember kpti:AniviveLifesciencesMember 2019-06-30 0001503802 kpti:ThreePercentageConvertibleSeniorNotesDueTwoThousandTwentyFiveMember 2019-06-30 0001503802 us-gaap:EmployeeStockOptionMember 2019-06-30 0001503802 us-gaap:CorporateDebtSecuritiesMember 2019-06-30 0001503802 kpti:AniviveLifesciencesMember us-gaap:LicenseAgreementTermsMember 2019-06-30 0001503802 kpti:SelinexorMember kpti:OnoPharmaceuticalCompanyLimitedMember us-gaap:LicenseAgreementTermsMember 2019-06-30 0001503802 kpti:EltanexorMember kpti:OnoPharmaceuticalCompanyLimitedMember us-gaap:LicenseAgreementTermsMember 2019-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2019-06-30 0001503802 kpti:EmployeeStockPurchasePlanMember 2019-06-30 0001503802 kpti:SelinexorMember us-gaap:LicenseAgreementTermsMember kpti:AntengeneTherapeuticsLimitedMember 2019-06-30 0001503802 us-gaap:LicenseAgreementTermsMember kpti:AntengeneTherapeuticsLimitedMember kpti:EltanexorMember 2019-06-30 0001503802 us-gaap:LicenseAgreementTermsMember kpti:AntengeneTherapeuticsLimitedMember kpti:KPT9274Member 2019-06-30 0001503802 kpti:VerdinexorMember us-gaap:LicenseAgreementTermsMember kpti:AntengeneTherapeuticsLimitedMember 2019-06-30 0001503802 kpti:EmployeeAndNonEmployeeStockOptionMember 2019-06-30 0001503802 us-gaap:LicenseAgreementTermsMember us-gaap:ScenarioPlanMember kpti:ClinicalDevelopmentAndRegulatoryMilestoneMember srt:MaximumMember kpti:OnoPharmaceuticalCompanyLimitedMember 2019-06-30 0001503802 us-gaap:LicenseAgreementTermsMember kpti:OnoPharmaceuticalCompanyLimitedMember 2019-06-30 0001503802 kpti:OnoPharmaceuticalCompanyLimitedMember 2019-06-30 0001503802 kpti:AntengeneTherapeuticsLimitedMember 2019-06-30 0001503802 us-gaap:MoneyMarketFundsMember 2019-06-30 0001503802 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2019-06-30 0001503802 us-gaap:CommercialPaperMember 2019-06-30 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember 2019-06-30 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2019-06-30 0001503802 us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2019-06-30 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember us-gaap:ShortTermInvestmentsMember 2019-06-30 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ShortTermInvestmentsMember 2019-06-30 0001503802 us-gaap:FairValueInputsLevel2Member us-gaap:CertificatesOfDepositMember us-gaap:ShortTermInvestmentsMember 2019-06-30 0001503802 kpti:EmployeeStockPurchasePlanMember srt:MinimumMember 2019-06-30 0001503802 us-gaap:FairValueInputsLevel1Member 2019-06-30 0001503802 us-gaap:FairValueInputsLevel2Member 2019-06-30 0001503802 us-gaap:StockOptionMember 2019-04-01 2019-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2019-04-01 2019-06-30 0001503802 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001503802 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001503802 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001503802 kpti:BiogenMAIncMember 2019-04-01 2019-06-30 0001503802 us-gaap:StockOptionMember 2018-01-01 2018-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-06-30 0001503802 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-06-30 0001503802 kpti:EmployeeStockPurchasePlanMember 2018-01-01 2018-06-30 0001503802 us-gaap:CommonStockMember 2018-01-01 2018-06-30 0001503802 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0001503802 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0001503802 kpti:OnoPharmaceuticalCompanyLimitedMember 2018-01-01 2018-06-30 0001503802 us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0001503802 us-gaap:CommonStockMember 2018-12-31 0001503802 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001503802 us-gaap:RetainedEarningsMember 2018-12-31 0001503802 us-gaap:CommonStockMember 2019-06-30 0001503802 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001503802 us-gaap:RetainedEarningsMember 2019-06-30 0001503802 us-gaap:CommonStockMember 2018-03-31 0001503802 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001503802 us-gaap:RetainedEarningsMember 2018-03-31 0001503802 us-gaap:CommonStockMember 2018-06-30 0001503802 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001503802 us-gaap:RetainedEarningsMember 2018-06-30 0001503802 us-gaap:CommonStockMember 2019-03-31 0001503802 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001503802 us-gaap:RetainedEarningsMember 2019-03-31 0001503802 us-gaap:CommonStockMember 2017-12-31 0001503802 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001503802 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001503802 us-gaap:RetainedEarningsMember 2017-12-31 xbrli:shares utr:sqft iso4217:USD iso4217:JPY xbrli:pure kpti:Securities iso4217:USD xbrli:shares kpti:Installment utr:D
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
June 30, 2019
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 July 31, 2019, there were 61,920,517 shares of Common Stock, $0.0001 par value per share, outstanding.
     
 
 
Table of Contents
 
TABLE OF CONTENTS
     
 
             
Item 1.
     
3
 
     
3
 
     
4
 
     
5
 
     
6
 
     
7
 
     
8
 
Item 2.
     
25
 
Item 3.
     
31
 
Item 4.
     
31
 
             
     
 
             
Item 1.
     
32
 
Item 1.A.
     
32
 
Item 6.
     
71
 
     
72
 
 
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 share and per share amounts)
                 
 
June 
30,
2019
   
December 
31,
2018
 
Assets
   
     
 
Current assets:
   
     
 
Cash and cash equivalents
 
$
75,545
   
$
118,021
 
Short-term investments
   
141,614
     
210,178
 
Prepaid expenses and other current assets
   
5,671
     
6,413
 
                 
Total current assets
   
222,830
     
334,612
 
Property and equipment, net
   
3,375
     
3,863
 
Operating lease
right-of-use
assets
   
11,180
     
— 
 
Long-term investments
   
— 
     
2,001
 
Restricted cash
   
715
     
716
 
                 
Total assets
 
$
238,100
   
$
341,192
 
                 
Liabilities and stockholders’ equity
   
     
 
Current liabilities:
   
     
 
Accounts payable
 
$
1,113
   
$
4,332
 
Accrued expenses
   
27,799
     
32,493
 
Deferred revenue
   
1,287
     
9,362
 
Operating lease liabilities
   
1,522
     
— 
 
Deferred rent
   
— 
     
390
 
Other current liabilities
   
453
     
327
 
                 
Total current liabilities
   
32,174
     
46,904
 
Convertible senior notes
   
106,157
     
102,664
 
Operating lease liabilities, net of current portion
   
14,055
     
—  
 
Deferred revenue, net of current portion
   
3,245
     
4,532
 
Deferred rent, net of current portion
   
     
3,922
 
                 
Total liabilities
   
155,631
     
158,022
 
Stockholders’ equity:
   
     
 
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding
   
 
     
 
 
Common stock, $0.0001 par value; 200,000,000 shares authorized; 60,965,505 shares issued and outstanding at June 30, 2019; 
100,000,000
shares authorized;
60,829,308
shares issued and outstanding at
December 31, 2018
   
6
     
6
 
Additional
paid-in
capital
   
865,726
     
857,156
 
Accumulated other comprehensive income (loss)
   
61
     
(244
)
Accumulated deficit
   
(783,324
)
   
(673,748
)
                 
Total stockholders’ equity
   
82,469
     
183,170
 
 
               
Total liabilities and stockholders’ equity
 
$
238,100
   
$
341,192
 
                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to condensed consolidated financial statements. 
 
3
 
 
Table of Contents
 
Karyopharm Therapeutics Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except share and per share amounts)
                                 
 
Three Months Ended,
June 30,
   
Six Months Ended
June 30,
 
 
2019
   
2018
   
2019
   
2018
 
License and other revenue
 
$
9,493
   
$
19,891
   
$
9,648
   
$
29,891
 
Operating expenses:
   
     
     
     
 
Research and development
   
26,517
     
44,734
     
64,491
     
86,055
 
General and administrative
   
24,662
     
9,489
     
51,765
     
17,110
 
 
                               
Total operating expenses
   
51,179
     
54,223
     
116,256
     
103,165
 
                                 
Loss from operations
   
(41,686
)
   
(34,332
)
   
(106,608
)
   
(73,274
)
Other income (expense):
   
     
     
     
 
Interest income
   
1,412
     
653
     
3,183
     
1,162
 
Interest expense
   
(3,089
)
   
—  
     
(6,087
)
   
—  
 
Other (expense) income
   
(44
)
   
7
     
(46
)
   
(7
)
 
                               
Total other (expense) income, net
   
(1,721
)
   
660
     
(2,950
)
   
1,155
 
                                 
Loss before income taxes
   
(43,407
)
   
(33,672
)
   
(109,558
)
   
(72,119
)
Income tax (provision) benefit
   
(8
)
   
17
     
(18
)
   
5
 
                                 
Net loss
 
$
(43,415
)
 
$
(33,655
)
 
$
(109,576
)
 
$
(72,114
)
                                 
Net loss per share—basic and diluted
 
$
(0.71
)
 
$
(0.60
)
 
$
(1.80
)
 
$
(1.36
)
                                 
Weighted-average number of common shares outstanding used in net loss per share—basic and
diluted
   
60,929,024
     
56,089,159
     
60,892,860
     
52,862,194
 
                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
June 30,
   
Six Months Ended
June 30,
 
 
2019
   
2018
   
2019
   
2018
 
Net loss
 
$
(43,415
)
 
$
(33,655
)
 
$
   (109,576
)
 
$    
(72,114
)
                                 
Comprehensive income (loss)
   
     
     
     
 
Unrealized gain (loss) on investments
   
52
     
104
     
309
     
(5
)
Foreign currency translation adjustments
   
37
     
(78
)
   
(4
)
   
(38
)
                                 
Comprehensive loss
 
$
(43,326
)
 
$
(33,629
)
 
$
(109,271
)
 
$
(72,157
)
                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to condensed consolidated financial statements.
 
5
 
 
Table of Contents
 
Karyopharm Therapeutics Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
                 
 
Six Months Ended
June 30,
 
 
2019
   
2018
 
Operating activities
   
     
 
Net loss
 
$
(109,576
)
 
$
(72,114
)
Adjustments to reconcile net loss to net cash used in operating activities:
   
     
 
Depreciation and amortization
   
487
     
353
 
Net amortization of premiums and discounts on investments
   
(968
)
   
270
 
Amortization of debt discount and issuance costs
   
3,493
     
—  
 
Stock-based compensation expense
   
8,023
     
8,604
 
Changes in operating assets and liabilities:
   
     
 
Prepaid expenses and other current assets
   
742
     
(1,685
)
Operating lease
right-of-use
assets
   
531
     
 
Accounts payable
   
(3,171
)
   
(1,870
)
Accrued expenses and other liabilities
   
(4,580
)
   
1,624
 
Operating lease liabilities
   
(446
)
   
—  
 
Deferred revenue
   
(9,362
)
   
(8,026
)
Deferred rent
   
—  
     
564
 
                 
Net cash used in operating activities
   
(114,827
)
   
(72,280
)
Investing activities
   
     
 
Purchases of property and equipment
   
(49
)
   
(779
)
Proceeds from maturities of investments
   
118,511
     
50,602
 
Purchases of investments
   
(46,668
)
   
(74,943
)
                 
Net cash provided by (used in) investing activities
   
71,794
     
(25,120
)
Financing activities
   
     
 
Proceeds from the issuance of common stock, net of issuance costs
   
—  
     
145,720
 
Proceeds from the exercise of stock options and shares issued under employee stock purchase plan
   
547
     
1,841
 
                 
Net cash provided by financing activities
   
547
     
147,561
 
Effect of exchange rate on cash, cash equivalents and restricted cash
   
9
     
(44
)
                 
Net (decrease) increase in cash, cash equivalents and restricted cash
   
(42,477
)
   
50,117
 
Cash, cash equivalents and restricted cash at beginning of period
   
118,737
     
69,487
 
                 
Cash, cash equivalents and restricted cash at end of period
 
$
76,260
   
$
119,604
 
                 
Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets
   
     
 
Cash and cash equivalents
 
$
75,545
   
$
118,966
 
Short-term restricted cash
   
  
     
  
 
Long-term restricted cash
   
715
     
638
 
                 
Total cash, cash equivalents and restricted cash
 
$
76,260
   
$
119,604
 
                 
Supplemental disclosures:
   
     
 
Operating lease
right-of-use
assets obtained in exchange for operating lease liabilities
 
$
11,711
   
$
—  
 
Cash paid for amounts included in the measurement of operating lease liabilities
 
$
1,319
   
$
—  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to condensed consolidated financial statements.
 
6
 
 
Table of Contents
 
 
Karyopharm Therapeutics Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(unaudited)
(in thousands, except share amounts)
                                                 
 
Common Shares
   
   
   
   
   
 
Shares
   
Amount
   
Additional
Paid-In

Capital
   
Accumulated
Other
Comprehensive
Loss
   
Accumulated
Deficit
   
Total
Stockholders’
Equity
(Deficit)
 
Balance at March 31, 2019
   
60,864,445
   
$
6
   
$
861,215
   
$
(28
)
 
$
(739,909
)
 
$
121,284
 
Vesting of restricted stock
   
     
     
     
     
     
 
Exercise of stock options and shares issued under the employee stock purchase plan
   
101,060
     
     
395
     
     
     
395
 
Stock-based compensation expense
   
     
     
4,116
     
     
     
4,116
 
Unrealized gain on investments
   
     
     
     
52
     
     
52
 
Foreign currency translation adjustment
   
     
     
     
37
     
     
37
 
Net loss
   
     
     
     
     
(43,415
)
   
(43,415
)
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2019
 
 
60,965,505
 
 
$
6
 
 
$
865,726
 
 
$
61
 
 
$
(783,324
)
 
$
82,469
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2018
   
49,670,328
   
$
5
   
$
629,610
   
$
(286
)
 
$
(533,799
)
 
$
95,530
 
Vesting of restricted stock
   
98,800
     
     
     
     
     
 
Exercise of stock options and shares issued under the employee stock purchase plan
   
206,708
     
     
1,412
     
     
     
1,412
 
Issuance of common stock
 
 
10,525,424
 
 
 
1
 
 
 
145,718
 
 
 
 
 
 
 
 
 
145,719
 
Stock-based compensation expense
   
     
     
4,440
     
     
     
4,440
 
Unrealized gain on investments
   
     
     
     
104
     
     
104
 
Foreign currency translation adjustment
   
     
     
     
(78
)
   
     
(78
)
Net loss
   
     
     
     
     
(33,655
)
   
(33,655
)
                                                 
Balance at June 30, 2018
   
60,501,260
   
$
6
   
$
781,180
   
$
(260
)
 
$
(567,454
)
 
$
213,472
 
                                                 
Balance at December 31, 2018
   
60,829,308
   
$
6
     
857,156
   
$
(244
)
 
$
(673,748
)
 
$
183,170
 
Vesting of restricted stock
   
5,000
     
     
     
     
     
 
Exercise of stock options and shares issued under the employee stock purchase plan
   
131,197
     
     
547
     
     
     
547
 
Stock-based compensation expense
   
     
     
8,023
     
     
     
8,023
 
Unrealized gain on investments
   
     
     
     
309
     
     
309
 
Foreign currency translation adjustment
   
     
     
     
(4
)
   
     
(4
)
Net loss
   
     
     
     
     
(109,576
)
   
(109,576
)
                                                 
Balance at June 30, 2019
 
 
60,965,505
 
 
$
6
 
 
$
865,726
 
 
$
61
 
 
$
(783,324
)
 
$
82,469
 
Balance at December 31, 2017
   
49,533,150
   
$
5
   
$
625,017
   
$
(217
)
 
$
(495,340
)
 
$
129,465
 
Vesting of restricted stock
   
103,800
     
     
     
     
     
 
Exercise of stock options and shares issued under the employee stock purchase plan
   
338,886
     
     
1,841
     
     
     
1,841
 
Issuance of common stock
 
 
10,525,424
 
 
 
1
 
 
 
145,718
 
 
 
 
 
 
 
 
 
145,719
 
Stock-based compensation expense
   
     
     
8,604
     
     
     
8,604
 
Unrealized loss on investments
   
     
     
     
(5
)
   
     
(5
)
Foreign currency translation adjustment
   
     
     
     
(38
)
   
     
(38
)
Net loss
   
     
     
     
     
(72,114
)
   
(72,114
)
                                                 
Balance at June 30, 2018
   
60,501,260
   
$
6
   
$
781,180
   
$
(260
)
 
$
(567,454
)
 
$
213,472
 
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to condensed consolidated financial statements.
 
7
 
 
Table of Contents
  
Karyopharm Therapeutics Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands except share and per share data)
1. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Karyopharm Therapeutics Inc., a Delaware corporation (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Regulation
 S-X,
Rule
 10-01.
Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2019. For further information, refer to the financial statements and footnotes included in the Company’s Annual Report on Form
 10-K
for the year ended December 31, 2018 as filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019.
In July 2019, the U.S. Food and Drug Administration (“FDA”) approved XPOVIO
TM
 
(selinexor) in combination with dexamethasone for the treatment of adult patients with relapsed or refractory multiple myeloma (“RRMM”) who have received at least four prior therapies and whose disease is refractory to at least two proteasome inhibitors, at least two immunomodulatory agents, and an anti-CD38 monoclonal antibody. This indication is approved under accelerated approval based on response rate. Following accelerated approval by the FDA, XPOVIO became commercially available in the United States in July 2019.
At June 30, 2019, the Company had $217,159 in cash, cash equivalents and investments. The Company has had recurring losses and incurred a loss of $109,576 for the six months ended June 30, 2019. Net cash used in operations for the six months ended June 30, 2019 was $114,827. The Company expects that its cash, cash equivalents and investments at June 30, 2019 will be sufficient to fund current operating plans and capital expenditure requirements for at least twelve months from the date of issuance of these financial statements
, during which time
the
Company plans to continue to commercialize
XPOVIO in the United States
, which commenced in
July 2019.
Basis of Consolidation
The condensed consolidated financial statements at June 30, 2019 include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The significant accounting policies used in preparation of these condensed consolidated financial statements on Form
 10-Q
for the six months ended June 30, 2019 are consistent with those discussed in Note 2 to the financial statements in the Company’s Annual Report on Form
 10-K
for the year ended December 31, 2018, except as it relates to the adoption of new accounting standards during the first six months of 2019 as discussed below.
2. Recent Accounting Pronouncements
Recently Adopted Accounting Standards
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
 2016-02,
Leases (Topic
 842)
(“ASU
2016-02”).
ASU
2016-02
supersedes the lease guidance under FASB ASC Topic 840,
Leases
, resulting in the creation of FASB Accounting Standards Codification (“ASC”) Topic 842,
Leases
 (“ASC 842”). The new standard requires that all lessees (i) recognize, on the balance sheet, liabilities to remit lease payments and
right-of-use
assets, representing the right to use the underlying asset for the lease term for both finance and operating leases, and (ii) disclose qualitative and quantitative information about its leasing arrangements.
In July 2018, the FASB issued ASU No. 2018-10,
Codification Improvements to Topic 842, Leases
(“ASU 2018-10”) and ASU No. 2018-11,
Leases (Topic
 842) Targeted 
Improvements
(“ASU 2018-11”). The amendments in ASU 2018-10 and ASU 2018-11 provide additional clarification and implementation guidance on certain aspects of ASU 2016-02 and have the same effective and transition requirements as ASU 2016-02, as detailed below. ASU 2018-11 provides entities the option to not provide comparative period financial statements and instead apply the transition requirements as of the effective date of ASU 2016-02.
 
8
 
 
Table of Contents
 
ASU 2016-02, ASU 2018-10, and ASU 2018-11 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company adopted the standard effective January 1, 2019 using the optional transition method under ASU 2018-11 and, therefore, prior period financial information has not been retrospectively adjusted.
Pursuant to the guidance under ASU 2016-02, the Company elected the optional package of practical expedients to leases that commenced prior to the effective date, which allowed the Company to not reassess: (i) whether expired or existing contracts contain leases; (ii) lease classification for any expired or existing leases; and (iii) initial direct costs for any existing leases. The new standard also allows entities to make certain policy elections, some of which the Company elected, including: (i) a policy to not record right-of-use assets and leases on the balance sheet for short-term leases that qualify and (ii) a policy to not separate lease and non-lease components for certain classes of underlying assets on contracts entered into or modified after the effective date. The Company did not elect the use of hindsight in estimating the lease term for leases subject to transition to the new standard.
As summarized in the table below, the standard had a material impact on the Company’s condensed consolidated balance sheet as of June 30, 2019, specifically through recognition of
right-of-use
assets of $11,711 and lease liabilities of $16,023 for the Company’s existing operating lease for office space in Newton, MA on the effective date. The difference between the operating lease
right-of-use
assets and operating lease liabilities is due to the change in classification of deferred rent and lease incentives, as recorded on the Company’s condensed consolidated balance sheets through December 31, 2018, from liabilities to reduction in the Company’s operating lease
right-of-use
assets. However, the standard did not have a material impact on the Company’s condensed consolidated statement of operations and comprehensive loss for the three and six months ended June 30, 2019, as expense for the Company’s existing operating leases continues to be recognized consistent with the recognition pattern before adoption of the new standard. Please refer to Note 8, “Leases” for further information.
                         
 
    January 1, 2019    
Prior to ASC
842 Adoption
   
ASC 842
    Adjustment    
   
    January 1, 2019    
as Adjusted
 
Consolidated balance sheet data (in thousands):
   
     
     
 
Operating lease and right-of-use assets 
(1)
   
$    —  
     
$   11,711
     
$ 11,711
 
Deferred rent 
(2)
   
$    390
     
$     (390)
     
$      —  
 
Deferred rent non-current
(2)
   
$ 3,922
     
$  (3,922)
     
$      —  
 
Operating lease liabilities 
(3)
   
$    —  
     
$     1,175
     
$   1,175
 
Non-current operating lease liabilities 
(3)
   
$    —  
     
$   14,848
     
$ 14,848
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents capitalization of operating lease
right-of-use
assets, offset by reclassification of deferred rent and tenant incentives to operating lease
right-of-use
assets.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2) Represents reclassification of deferred rent and tenant incentives to operating lease
right-of-use
assets.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3) Represents recognition of operating lease liabilities.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company implemented internal controls to enable the preparation of financial information upon adoption.
In June 2018, the FASB issued ASU No.
 2018-07,
Compensation-Stock Compensation (Topic
 718): Improvements to Nonemployee Share-Based Payment Accounting
(“ASU
 2018-07”).
ASU
 2018-07
largely aligns the accounting for share-based payment awards issued to employees and nonemployees by expanding the scope of Topic 718 to apply to nonemployee share-based transactions, as long as the transaction is not effectively a form of financing. The new guidance was adopted on January 1, 2019 and it did not have a material impact on the Company’s condensed consolidated financial statements.
In July 2018, the FASB issued ASU No.
 2018-09,
Codification Improvements
(“ASU
2018-09”).
This amendment makes changes to a variety of topics to clarify, correct errors in, or make minor improvements to the Accounting Standards Codification. The amendments are effective for annual periods beginning after December 15, 2018 and were adopted effective January 1, 2019. The adoption of these amendments did not have a material impact on the Company’s condensed consolidated financial statements.
In November 2018, the FASB issued ASU No.
 2018-18,
Collaborative Arrangements (Topic 808)—Clarifying the Interaction between Topic 808 and Topic 606
(“ASU
2018-18”).
The amendments in ASU
2018-18
clarify that certain transactions between collaborative arrangement participants should be accounted for as revenue under ASC 606,
Revenue from Contracts with Customers
(“ASC 606”), when the collaborative arrangement participant is a customer in the context of a unit of account. The amendments under ASU
2018-18
are effective for interim and annual fiscal periods beginning after December 15, 2019, with early adoption permitted. The amendments in ASU
2018-18
should be applied retrospectively to the date of initial application of ASC 606. The Company adopted this guidance effective January 1, 2019 using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements, as each of the Company’s arrangements detailed
 
9
 
 
Table of Contents
 
below within Note 3, “License and Asset Purchase Agreements,” were previously accounted for under ASC 606, not ASC 808, and the Company has no other arrangements within the scope of ASC 808.
On August 17, 2018, the SEC issued an amendment to Rule 3-04 of Regulation S-X, which extended the annual disclosure requirement of reporting changes in stockholders’ equity to interim periods. Such disclosures are to be provided in a note to the financial statements or in a separate financial statement and requires both the year-to-date information and subtotals for each interim period. On September 25, 2018, the SEC issued guidance under a Compliance and Disclosure Interpretation (“C&DI 105.09”) to clarify the effective date of the requirement. Under the guidance in C&DI 105.09, the Company implemented this updated disclosure requirement beginning with the Form 10-Q for the quarterly period ended March 31, 2019, specifically through inclusion of the comparative condensed consolidated statements of stockholders’ equity.
Recently Issued Accounting Standards
In June 2016, the FASB issued ASU No. 2016-13,
Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
(“ASU 2016-13”). ASU 2016-13 requires that credit losses be reported using an expected losses model rather than the incurred losses model that is currently used, and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, this standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. The amendments under ASU 2016-13 are effective for interim and annual fiscal periods beginning after December 15, 2019. The Company is currently evaluating the effects the adoption of ASU 2016-13 will have on its consolidated financial statements and related disclosures.
 
In August 2018, the FASB issued ASU No.
 2018-13,
F
air Value Measurement—Disclosure Framework-Changes to the Disclosure Requirement for Fair Value Measurement
(“ASU
2018-13”).
The amendments in ASU
2018-13
modify the disclosure requirements on fair value measurements in ASC 820, Fair Value Measurement, based on the concepts in the FASB Concepts Statement, including the consideration of costs and benefits. The amendments under ASU
2018-13
are effective for interim and annual fiscal periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the effects the adoption of ASU