Leerink: Karyopharm Therapeutics Still A Buy, Cash Can Last Until 2018

In a report published Monday, Leerink analyst Michael Schmidt reiterated an Outperform rating on Karyopharm Therapeutics, Inc. KPTI. The analyst believes that the Phase I DLBCL data was encouraging. "KPTI investigators presented an update from the ongoing single-agent Phase I DLBCL study and first data from an investigator-sponsored chemotherapy combination trial of selinexor in relapsed/refractory AML at EHA this weekend," Schimdt reported. The longer-term follow-up data from the trial showed that responses to selinexor were persistent and associated with clinical benefit. "We believe KPTI shares are currently valued for the probability-adjusted selinexor opportunity in late stage hematological cancers only, and we view potential activity in earlier lines of therapy and/or in synergistic combinations as sources of upside to the current valuation," the Leerink report said. The responses showed four complete remissions and eight partial responses. According to the analysis presented by the company at EHA, the responses were also associated with meaningfully better progression-free survival, as well as overall survival. "We think this bodes well for the ongoing Phase II trial since response rates and duration should increase in slightly earlier stage and better managed patients," Schmidt added, while stating that the combination studies of selinexor with chemotherapy in difficult to treat patients also reported positive results. Combination studies for selinexor for first line therapy of older patients with AML are also ongoing. "We estimate that KPTI's current cash will be sufficient to fund into 2018, and the company may have additional financing needs before turning cash flow positive," the Leerink report stated.