Karyopharm Signs $150M Royalty Agreement To Support Xpovio
Zacks Investment Research | Sep 16, 2019 10:39PM ET
Karyopharm Therapeutics Inc. (NASDAQ:KPTI) announced that it has entered into a royalty agreement for up to $150 million with private investment firm, HealthCare Royalty Partners. The deal was signed to support commercialization of its recently approved drug, Xpovio (selinexor), as well as its ongoing development.
Karyopharm will receive $75 million upfront at the close of the deal, anticipated this month. It is also eligible to receive regulatory and commercial milestone payments of up to $75 million. In return, HealthCare Royalty Partners will be eligible to receive tiered royalty in mid-single digits on worldwide sales of Xpovio or any other future products.
Please note that Xpovio was industry ’s growth of 6.2%.
We note that Xpovio has received accelerated approval from the FDA for fifth or later line RRMM, which means that continued approval is contingent upon data from confirmatory study. Meanwhile, the drug is under review in Europe for a similar indication and a decision is expected by early 2020.
Karyopharm is also developing the drug in combination with Takeda’s (NYSE:TAK) Velcade as a first to third-line treatment option for patients with RRMM in a late-stage study. The company is also evaluating the drug for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. Last year, the company had announced positive top-line data from a mid-stage study evaluating Xpovio in this indication. The drug also enjoys Fast Track designation for this indication. The company is also developing the drug in combination with currently approved therapies for treating liposarcoma, recurrent gliomas and endometrial cancer.
Please note that although there are several drugs available for treating RRMM, Xpovio is unlikely to face significant competition as the targeted patient population includes patients who are resistant to several available drugs.
Meanwhile, in June, J&J’s (NYSE:JNJ) Darzalex was approved in combination with Celgene’s (NASDAQ:CELG) Revlimid for treating first-line multiple myeloma. Darzalex is also being developed for relapsed multiple myeloma.
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