Karyopharm (KPTI) Sell-Off Overdone, Leerink Partners Says

Leerink Partners analyst Michael Schmidt reiterated an Outperform rating but lowered his price target on Karyopharm Therapeutics (NASDAQ: KPTI) to $41.00 (from $58.00) following yesterday's sell-off. The analyst said the move is overdone in their view.

Schmidt commented, "KPTI reported 2Q15 financial results and provided a pipeline update. Mgmt announced it amended the ongoing randomized SOPRA Ph II study of selinexor in AML to reduce the dose after observation of a higher rate of sepsis in patients treated w/ selinexor vs. physician's choice (PC). The news triggered a 39% sell-off and KPTI now trades at a fully diluted enterprise value (EV) of only $282M, pricing in a ~$110M opp'ty for selinexor 5 years post-launch (2022). We see the weakness as a buying opp'ty, given that (1) sepsis is not an uncommon complication seen in pts w/ AML, (2) the observations were limited to selinexor trials in AML and not other indications, (3) selinexor was clearly active in AML at the lower 60mg dose in Ph I, and (4) 3 other potl. registration-enabling Ph II trials are ongoing with updates expected in mid- and late 2016. Meanwhile, we believe positive combination data at ASH potl. in multiple myeloma (MM) and AML should remove the overhang. Updating ests to reflect 2Q15 results and adjusting PT to $41 (from $58)."

For an analyst ratings summary and ratings history on Karyopharm Therapeutics click here. For more ratings news on Karyopharm Therapeutics click here.

Shares of Karyopharm Therapeutics closed at $13.44 yesterday.

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