NEWTON, MA – Karyopharm Therapeutics (NASDAQ:KPTI) Inc. has been notified by Nasdaq that its stock price has not met the minimum required bid price over the past 32 business days, placing the pharmaceutical company at risk of being delisted from the Nasdaq Global Select Market.
The company, which specializes in pharmaceutical preparations, received the notification on Monday, indicating that its common stock had closed below the $1.00 per share threshold set by Nasdaq's Listing Rule 5450(a)(1).
Despite the warning, the delisting of Karyopharm's stock, trading under the ticker NASDAQ:KPTI, is not immediate. Nasdaq's rules allow for a 180-day period, ending on March 17, 2025, for the company to regain compliance. To meet Nasdaq's requirements, the bid price of Karyopharm's common stock must close at $1.00 per share or higher for at least 10 consecutive business days during this period.
Karyopharm may be granted an additional 180 days to achieve compliance if necessary, which would involve transferring its stock listing to the Nasdaq Capital Market and meeting all other initial listing standards except for the bid price. The company may consider implementing a reverse stock split to boost its share price above the minimum bid price if needed.
The company has expressed its intention to monitor its stock's closing bid price closely and to explore all available options to regain compliance with Nasdaq's Bid Price Rule. However, there is no guarantee that Karyopharm will be successful in its efforts to maintain its listing.
In other recent news, Karyopharm Therapeutics Inc. has experienced several notable developments. The pharmaceutical company announced the resignation of Michael Mason, the Executive Vice President, Chief Financial Officer, and Treasurer, who will step down on November 5, 2024. The company is currently seeking a successor for Mason, who will remain in his role until his departure to ensure a smooth transition.
Furthermore, two distinct firms have adjusted Karyopharm's financial outlook. H.C. Wainwright revised the company's price target to $7.00 from $8.00 due to an anticipated increase in the diluted share count for 2024. Despite this, the firm maintained a Buy rating, suggesting optimism about Karyopharm's prospects, and slightly improved the full-year 2024 earnings per share (EPS) estimate.
On another note, RBC Capital maintained its Outperform stock rating for Karyopharm Therapeutics, highlighting the potential of the drug selinexor in label expansion opportunities and projected U.S. sales potential of $400-500 million. The firm's positive outlook is also influenced by Karyopharm Therapeutics' recent debt restructuring.
InvestingPro Insights
In light of Karyopharm Therapeutics Inc.'s recent notification from Nasdaq regarding its stock price, current metrics from InvestingPro may offer additional context for investors. As of the last twelve months ending with Q2 2024, the company has a market cap of approximately $94.14 million and a high gross profit margin of 89.19%, which is indicative of the company's effective cost control in relation to its revenues. Despite this impressive margin, analysts have noted concerns, such as the company's rapid cash burn and the expectation that it will not be profitable this year.
InvestingPro Tips highlight that four analysts have revised their earnings estimates upwards for the upcoming period, suggesting a potential positive outlook on the company's financial performance. Additionally, Karyopharm's liquid assets have been reported to exceed short-term obligations, which may provide some financial flexibility in the near term. However, the stock has experienced a significant decline over the last six months, with a price total return of -49.31%.
For investors seeking a deeper dive into Karyopharm's financial health and future prospects, there are additional InvestingPro Tips available, which can be found on the InvestingPro platform. These tips could provide valuable insights for making informed investment decisions regarding Karyopharm's stock.
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