Image source: Getty Images.
After reporting results from a midstage clinical trial, shares of Karyopharm Therapeutics (NASDAQ: KPTI)fell 14% as of 2:50 p.m. ET.
Karyopharm Therapeutics is a clinical-stage biotech primarily focused on creating products that treat cancer. The company released results today from its phase 2b STORM study, which was testing its lead compound selinexor as a potential treatment for the blood cancer multiple myeloma.
Results from the 78-patient study showed that selinexor achieved an overall response rate of 20.5% among patients who had previously received either four or five drugs to treat their disease.Based on this data, Karyopharm will be expanding the study and enrolling an additional 120 patients that had previously taken five prior therapies. If that 20% response rate holds up in the expanded study, the company plans on seeking accelerated approved from the Food and Drug Administration.Data from the expanded study is expected in early 2018.
Karyopharm also stated its intentions to move forward a randomized phase 3 trial, called BOSTON, which will investigate selinexor's use in combination with Takeda Pharmaceutical's Velcade andlow-dose dexamethasonein patients who had one to three prior lines of therapy. That trial is expected to begin in early 2017.
It's tough to say what data in this report caused the market's negative reaction, so perhaps today's share price action is just being caused by profit-taking on the stock'sbig gainlast week.
It's great to see that Karyopharm is moving forward with its phase 3 study and also expanding the phase 2b study, but those moves are likely to cause the company's expenses to balloon from here. Last quarter, thecompany lost more than $30 million, though it did end the period with $166 million in cash. Management believes that should be enough to fund continued clinicaldevelopmentinto the middle of 2018.
There will be plenty of data readouts between now and then that will capture investors' attention, but with revenue from product sales still a few years away, Karyopharm Therapeutics' stock is likely to remain highly volatile. That means that only risk-loving investors who like to swing for the fences should consider buying based on today's dip.
A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.
Brian Feroldi has no position in any stocks mentioned.Like this article? Follow him onTwitter where he goes by the handle@Longtermmindsetor connect with him on LinkedIn to see more articles like this.
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.