UPDATE: Bank of America Initiates Coverage on Karyopharm Therapeutics with Buy Rating, $24 PT on Novel Cancer Platform with Broad Potential

In a report published Monday, Bank of America analyst Steve Byrne initiated coverage on Karyopharm Therapeutics KPTI with a Buy rating and $24.00 price target. In the report, Bank of America noted, “We are initiating coverage of Karyopharm Therapeutics (KPTI) with a Buy rating and a $24 PO. Selinexor is the lead candidate from the company's novel technology platform. Though the molecule is still in early stage trials (ph 1), KPTI has collected interim data in more than 170 patients across ~20 cancer indications. We find the data thus far to be compelling as Selinexor has achieved stable disease or better in ~half of all patients who have received the drug. This response rate is particularly impressive given the population of patients (highly refractory, all with disease progression, in a mix of solid and liquid tumors) and dose optimization is still under way. We note safety appears favorable as Selinexor's mechanism (blockade of XPO1) lasts long enough to trigger death of cancer cells but is short enough to spare healthy cells. We incorporate a modest 25% probability in our DCF that includes both hematology and solid tumors, representing significant potential upside, in our view. KPTI's next catalyst will likely be 12 oral/poster presentations at ASH next week.” Karyopharm Therapeutics closed on Friday at $16.29.