Is Karyopharm Therapeutics Inc. (NASDAQ: KPTI) A Breakout Stock After Positive Myeloma Trial Results?
Karyopharm Therapeutics Inc. (NASDAQ: KPTI) has been trading higher in recent weeks, in what appears to be a continuation of the uptrend that began early last year. Fuelling the upward momentum is reports the company’s Myeloma candidate drug has achieved Fast Track Designation.
Price action points to continued movements on the upwards following a recent minor correction. The stock has already broken a critical resistance level at the $15.20 level and now looks set to make a push for the 52-week high of $18
Any sell-off should be limited to the $13.60 handle which appears to be a fundamental support level.
Karyopharm Therapeutics is a clinical-stage pharmaceutical company focused on the discovery and development of drugs for the treatment of cancer and other diseases. The company’s lead candidate drug Selinexor (KPT-330) is currently undergoing Phase 2b trial for the treatment of multiple refractory myeloma.
Why is the stock climbing high?
The granting of Fast Track Designation for the nuclear export compound Selinexor (KPT-330) by the Food and Drug Administration is the latest catalyst that appears to have strengthened investor confidence in Karyopharm Therapeutics.
The designation is usually used to expedite the development and review of a candidate drug that has the potential to treat unmet medical conditions. With the designation, the clinical stage company is set to enjoy a fast regulatory review process upon completion of clinical trial programs.
The company has already reported positive top-line data from a Phase 2B STORM Study evaluating the effectiveness of Selinexor in the treatment of patients with Penta-refractory Multiple Myeloma.
“The 25.4% response rate and 4.4-month duration of response observed in the STORM study are highly compelling. For an orally administered therapy, these new data underscore Selinexor’s potential to be an exciting new treatment option for these difficult-to-treat patients who have exhausted approved therapies,” said Sundar Jagannath, MD, Director of the Multiple Myeloma Program.
Buoyed by the positive results the company is planning to submit a New Drug Application in the second half of the year. Karyopharm Therapeutics also intends to file A Marketing Authorization Application with the European Medicines Agency early next year.
$135 Million Capital Raise
Separately Karyopharm Therapeutics has announced the pricing of a public offering of 1.2 million shares of its common stock, at a price of $14.75 a share. The company expects gross proceeds of $135 million from the offering which is set to close on May 7, 2018. Funds from the offering are to be used to support the company’s clinical development of Selinexor.