6. Karyopharm Therapeutics Inc. (NASDAQ:KPTI)
Number of Hedge Fund Investors: 19
Karyopharm Therapeutics Inc. (NASDAQ: KPTI) is a commercial-stage biotechnology company focusing on producing selinexor, a nuclear exportin 1 inhibitor. Through a phase 3 trial, KPTI hopes to add endometrial cancer to the list of diseases for which selinexor is now licensed, in addition to multiple myeloma, which is approved for treatment in later lines of therapy in the US.
The company’s shares have decreased by over 43% since 2019, with slow annual revenue growth over the years. However, currently, it is one of the best one dollar stocks to buy, according to investors. Karyopharm Therapeutics Inc. (NASDAQ:KPTI) has received an average price target of $4.60, reflecting analysts’ bullish outlook on the stock. The price target reflects a potential upside of over 416.04% from the current stock price of 0.89. Meanwhile, 5 analysts have given the stock a “buy” rating. Karyopharm Therapeutics Inc. (NASDAQ:KPTI) was owned by 19 of the 920 hedge funds that Insider Monkey examined in the first quarter of this year. Jonathan Berger’s Birch Grove Capital held the largest stake in the company, with 6,000,00 shares worth $3.21 million.
Karyopharm Therapeutics Inc (NASDAQ:KPTI) saw a sharp rise in February following Novartis’ $2.9 billion acquisition of the oncology-focused business MorphoSys AG. The firm reached 33.13 million in sales in the first quarter of 2024, with U.S. XPOVIO net product revenue forecast to be between $100.0 million and $120.0 million by 2024.
Karyopharm Therapeutics Inc. (NASDAQ: KPTI) is making significant progress with its nuclear exportin 1 inhibitor, selinexor, which will be presented in seven distinct ways at the ASCO meeting. The company is conducting an important study that, if successful, may completely change the treatment of endometrial cancer and myelofibrosis with its main medication, selinexor. Expansion prospects for selinexor, notably in myelofibrosis, will be major drivers of the business, with analysts seeing endometrial maintenance and SENTRY-2 trial combination trials as potentially valuable. The main goal of the SIENDO study was achieved: patients who received Xpovio had a statistically significant improvement in median progression-free survival as compared to placebo.
Karyopharm has $192.4 million in liquid assets, enough to fund its operations until the end of 2025. Karyopharm announced a significant debt restructure that would postpone the majority of repayments until 2028-2029, freeing up $30 million in cash on the balance sheet and lowering the royalty rate on selinexor.
Research on myelofibrosis and endometrial cancer, specifically focusing on individuals with TP53 wild-type, may expand the market for selinexor beyond its current use in multiple myeloma.
Three critical phase 3 studies one for myelofibrosis, one for endometrial cancer, and one more for myeloma are being conducted by KPTI. If any of these studies are successful, selinexor’s commercial prospects might be much improved, with huge upside potential.
It’s possible that KPTI won’t have enough funds on hand to continue operating after crucial trial results. Furthermore, there is no certainty that phase 3 studies will be successful, and a negative outcome might further harm KPTI.
Karyopharm Therapeutics Inc. has intriguing potential in spite of doubts and financial difficulties, with high cash burn rates YoY (42.97% in TTM and 31.20% in 2023) and low sales declining by 5.5.16% in TTM. Given the noteworthy catalysts now in operation, the company’s present value may be regarded as a high-risk “Buy.” Perhaps the present share price is undervalued if one of the major trials is successful in 2025.
