Karyopharm Therapeutics Inc. (NASDAQ:KPTI) has filed for Chapter 11 bankruptcy protection and entered into a restructuring agreement that provides for a proposed merger with Ayrmid Ltd., as the pharmaceutical company seeks to reorganise its business while maintaining operations and advancing its cancer treatment programmes.
The company has secured commitments for up to $55 million in additional financing from existing secured lenders to support operations during the restructuring process.
Karyopharm expects the proposed transaction to close in the first quarter of 2027, subject to court approval and other conditions.
Chapter 11 Filing Establishes Court-Supervised Sale Process
Karyopharm filed voluntary Chapter 11 petitions in the US Bankruptcy Court for the Southern District of Texas after reaching a Restructuring Support Agreement with existing lenders, noteholders and other stakeholders.
Under the proposed arrangement, Ayrmid will act as the lead bidder in a court-supervised sale process, providing an initial transaction proposal against which competing bids may be considered.
Karyopharm intends to seek court approval for bidding procedures that would allow other interested parties to submit alternative offers for its assets.
The company expects to complete the merger through a Chapter 11 reorganisation plan, although the final outcome remains subject to the bankruptcy proceedings.
Richard Paulson, President and Chief Executive Officer of Karyopharm, said the agreement followed an evaluation of the company’s strategic alternatives.
“Following a comprehensive review of available alternatives, we believe this process provides a clear framework to pursue a value maximizing transaction for our stakeholders while continuing our important work of advancing therapies for patients with multiple myeloma and myelofibrosis,” Paulson said.
Karyopharm Secures Up to $55 Million in Financing
As part of the restructuring, Karyopharm obtained commitments for up to $55 million in debtor-in-possession financing from its existing secured lenders.
Subject to bankruptcy court approval, the funding will be combined with cash generated from ongoing operations to support the business and meet financial obligations arising after the Chapter 11 filing.
Karyopharm said it expects its normal business activities and commercial partnerships to continue without interruption during the restructuring.
The company also intends to maintain development activities involving treatments for multiple myeloma and myelofibrosis.
Proposed Merger Would Combine Haematology Businesses
Ayrmid, the parent company of Gamida Cell, operates a commercial-stage biotechnology business focused on treatments for blood-related diseases.
The proposed merger would bring together Karyopharm’s existing oncology portfolio and development pipeline with Ayrmid’s commercial infrastructure and haematology products.
Karyopharm’s principal marketed treatment is XPOVIO (selinexor), which is approved in the United States for certain adults with relapsed or refractory multiple myeloma.
The company is also investigating selinexor for additional haematological conditions, including myelofibrosis, and developing next-generation compounds such as eltanexor.
Ayrmid’s portfolio includes two FDA-approved products, Omisirge (omidubicel-onlv) and APHEXDA (motixafortide), which are used in specified haematological treatment settings.
Dr Joe Wiley, Chairman and Chief Executive Officer of Ayrmid, said the companies have complementary portfolios and commercial capabilities.
“We see considerable potential in Karyopharm’s marketed products, development pipeline and experienced team, and believe that, together, we can build a broader, stronger commercial-stage hematology business with meaningful opportunities for future growth,” Wiley said.
Outlook
Karyopharm expects to complete its proposed merger with Ayrmid during the first quarter of 2027, provided the transaction satisfies the requirements of the Chapter 11 process.
The company plans to continue commercial operations and clinical development activities while the court-supervised sale proceeds.
However, the restructuring remains subject to judicial approval, potential competing bids and other conditions, meaning the proposed merger is not guaranteed to proceed as currently outlined.
Investors will be monitoring the approval of the financing arrangements, the outcome of the bidding process and the terms of the final reorganisation plan.
The announcement did not specify the expected recovery for existing common shareholders under the proposed restructuring.