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Executive Summary

Karyopharm Therapeutics has entered into a forbearance agreement with 100% of its term loan lenders, convertible noteholders, and royalty investors, after failing to make a ~$15.8M principal payment due September 10, 2026, and not expecting to pay cash interest due September 30, 2026. The forbearance period runs to October 15, 2026, providing a short window to negotiate a restructuring, raise equity, or pursue strategic alternatives, but the company explicitly states that absent additional funding, it will be unable to continue as a going concern and may seek bankruptcy protection. As consideration, the company will issue $20M of convertible preferred stock (convertible at $1.62/share) to the consenting lenders, adding further dilution risk to common equity holders.

Key Financial Metrics

Key Facts

• Company did not pay ~$15.8M principal installment due September 10, 2026 under its Term Loan Credit Agreement.
• Company does not expect to pay cash interest due September 30, 2026 under the Credit Agreement and Indentures.
• Company did not make cash interest payments on the 2028 and 2029 Notes on June 30, 2026 (~$2.8M in unpaid interest).
• Forbearance period runs only until October 15, 2026, providing a very short runway.
• Company states that absent additional funding, it will be unable to continue as a going concern and may seek bankruptcy protection.
• Company will issue $20M of 0% convertible perpetual preferred stock (20,000 shares at $1,000/share, convertible at $1.62/share) as forbearance consideration to lenders.
• As of September 10, 2026, ~$129.0M of term loan principal, $15.6M of 2028 Notes, and $108.0M of 2029 Notes were outstanding.
• Future royalty obligations under the Royalty Agreement totaled $113.5M as of September 10, 2026.
• Company expects existing liquidity to fund operations only until October 15, 2026.
• Liquidity covenant under debt agreements requires $25M minimum after October 10, 2026, which the company may not satisfy.

Financial Impact

Company has ~$252.6M in total debt (term loan $129.0M, 2028 Notes $15.6M, 2029 Notes $108.0M) plus $113.5M in future royalty obligations. $20M in convertible preferred stock issued as forbearance fee. Cash runway only through October 15, 2026.

Risk Factors

• Forbearance period expires October 15, 2026 — very limited time to restructure or raise capital.
• Any adverse FDA action on the sNDA for selinexor/myelofibrosis triggers immediate termination of forbearance.
• Consolidated liquidity falling below $10M triggers immediate termination of forbearance.
• If forbearance terminates, all overdue amounts become immediately due and payable in cash, likely forcing bankruptcy.
• $20M convertible preferred stock issuance at $1.62/share conversion price creates significant dilution risk for common shareholders.
• Company explicitly states it may be unable to continue as a going concern absent additional funding.

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

US Market Status