Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Karyopharm Therapeutics Inc. | ' |
Entity Central Index Key | '0001503802 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,700,563 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $227,131 | $155,974 |
Prepaid expenses and other current assets | 4,215 | 1,982 |
Total current assets | 231,346 | 157,956 |
Property and equipment, net | 2,734 | 240 |
Other assets | 675 | 30 |
Restricted cash | 400 | ' |
Total assets | 235,155 | 158,226 |
Current liabilities: | ' | ' |
Accounts payable | 2,102 | 1,740 |
Accrued expenses | 3,649 | 1,168 |
Deferred revenue | 14 | 79 |
Deferred rent | 142 | ' |
Other current liabilities | 327 | 305 |
Total current liabilities | 6,234 | 3,292 |
Deferred rent | 1,117 | ' |
Total liabilities | 7,351 | 3,292 |
Stockholders' equity | ' | ' |
Convertible preferred stock, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | ' | ' |
Common stock, $0.0001 par value; 100,000,000 shares authorized; 32,614,387 and 29,587,258 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 3 | 3 |
Additional paid-in capital | 340,219 | 217,500 |
Accumulated deficit | -112,418 | -62,569 |
Total stockholders' equity | 227,804 | 154,934 |
Total liabilities and stockholders' equity | $235,155 | $158,226 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,614,387 | 29,587,258 |
Common stock, shares outstanding | 32,614,387 | 29,587,258 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ' | ' | ' | ' |
Contract and grant revenue | $21 | ' | $214 | $366 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 15,951 | 7,738 | 40,089 | 18,763 |
General and administrative | 3,814 | 1,583 | 10,028 | 3,405 |
Total operating expenses | 19,765 | 9,321 | 50,117 | 22,168 |
Loss from operations | -19,744 | -9,321 | -49,903 | -21,802 |
Interest income | 20 | ' | 54 | 1 |
Net loss | -19,724 | -9,321 | -49,849 | -21,801 |
Net loss per share applicable to common stockholders-basic and diluted (in dollars per share) | ($0.61) | ($3.66) | ($1.63) | ($9.11) |
Weighted-average number of common shares outstanding used in net loss per share applicable to common stockholders-basic and diluted (in shares) | 32,558,646 | 2,544,587 | 30,619,074 | 2,392,589 |
Comprehensive loss | ($19,724) | ($9,321) | ($49,849) | ($21,801) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net loss | ($49,849) | ($21,801) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 191 | 106 |
Noncash consulting expense | ' | 88 |
Loss on disposal of fixed assets | 50 | ' |
Stock-based compensation expense | 9,649 | 1,769 |
Changes in operating assets and liabilities: | ' | ' |
Prepaid expenses and other current assets | -2,233 | -95 |
Other non-current assets | -645 | -2,042 |
Accounts payable | 362 | 673 |
Accrued expenses and other liabilities | 2,601 | 1,156 |
Deferred revenue | -65 | -66 |
Deferred rent | 1,259 | ' |
Net cash used in operating activities | -38,680 | -20,212 |
Investing activities | ' | ' |
Purchases of property and equipment | -2,735 | -25 |
Increase in restricted cash | -400 | ' |
Net cash used in investing activities | -3,135 | -25 |
Financing activities | ' | ' |
Proceeds from the issuance of common stock, net of issuance costs | 112,837 | 340 |
Proceeds from the exercise of stock options | 135 | ' |
Proceeds from sale of convertible preferred stock, net of issuance costs | ' | 72,434 |
Net cash provided by financing activities | 112,972 | 72,774 |
Net increase in cash and cash equivalents | 71,157 | 52,537 |
Cash and cash equivalents at beginning of period | 155,974 | 391 |
Cash and cash equivalents at end of period | 227,131 | 52,928 |
Supplemental disclosure of non-cash financing activity | ' | ' |
Issuance of preferred stock in satisfaction of preferred stock subscription | ' | $13,980 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
1. Summary of Significant Accounting Policies | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of Karyopharm Therapeutics Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 10-01. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2014. For further information, refer to the financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission (“SEC”) on March 21, 2014. | |
Basis of Consolidation | |
The consolidated financial statements at September 30, 2014 include the accounts of Karyopharm Therapeutics Inc. (a Delaware corporation), the accounts of Karyopharm Securities Corp. (“KPSC”, a wholly-owned Massachusetts corporation of the Company incorporated in December 2013), and the accounts of Karyopharm Europe GmbH (a wholly-owned German Limited Liability Company, incorporated in September 2014). At December 31, 2013, the consolidated financial statements also included the accounts of NPM Pharma Inc. (“NPM”, a wholly-owned Canadian corporation of the Company). As of March 31, 2014, NPM transferred its remaining assets and liabilities to Karyopharm Therapeutics Inc. Following the transfer, NPM was dissolved. The dissolution of NPM had no effect on the consolidated financial statements. | |
Subsequent Events | |
The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The Company has completed an evaluation of all subsequent events through the date of the filing of this Quarterly Report on Form 10-Q, and has determined that no events or transactions require recognition or disclosure. |
Recently_Issued_Accounting_Pro
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | ' |
2. Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition and most industry-specific guidance. The new standard requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. The Company has not determined yet the potential effects of the adoption of this standard on its consolidated financial position, results of operations or cash flows. | |
On June 10, 2014, the FASB issued ASU 2014-10, which simplifies financial reporting for development stage entities by eliminating requirements specific to development stage entities. As a result, entities in a development stage will no longer need to present inception-to-date information about income statement line items, cash flows, and equity transactions. Instead, the new guidance clarifies how these entities should tailor existing disclosures to explain the risks and uncertainties related to their activities. This update is effective for annual periods beginning after December 15, 2014, and early application is permitted for any annual or interim period for which the entity’s financial statements have not yet been issued. The Company adopted this guidance prior to issuing the interim financial statements for the three and six months ended June 30, 2014. The adoption of ASU 2014-10 impacted disclosure only and did not have any impact on the Company’s financial position or results of operations. | |
The Company did not adopt any new accounting pronouncements during the nine months ended September 30, 2014 that had an effect on the Company’s condensed consolidated financial statements, except for the adoption of ASU2014-10 discussed above. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
3. Fair Value of Financial Instruments | ||||||||||||||
The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The fair value hierarchy prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. The hierarchy defines three levels of valuation inputs: | ||||||||||||||
Level 1 inputs | Quoted prices in active markets for identical assets or liabilities | |||||||||||||
Level 2 inputs | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly | |||||||||||||
Level 3 inputs | Unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability | |||||||||||||
The Company’s cash equivalents are comprised of money market funds. The Company measures these investments at fair value. The fair value of cash equivalents is determined based on “Level 1” inputs. The following table presents information about the Company’s financial assets that have been measured at fair value at September 30, 2014 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): | ||||||||||||||
Description | Total | Quoted prices | Significant | Significant | ||||||||||
in active | other | unobservable | ||||||||||||
markets | observable | inputs | ||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||
(Level 2) | ||||||||||||||
Financial assets | ||||||||||||||
Money Market Funds, included in cash equivalents | $ | 219,067 | $ | 219,067 | $ | — | $ | — | ||||||
The following table presents information about the Company’s financial assets that have been measured at fair value at December 31, 2013 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): | ||||||||||||||
Description | Total | Quoted prices | Significant | Significant | ||||||||||
in active | other | unobservable | ||||||||||||
markets | observable | inputs | ||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||
(Level 2) | ||||||||||||||
Financial assets | ||||||||||||||
Money Market Funds, included in cash equivalents | $ | 155,765 | $ | 155,765 | $ | — | $ | — | ||||||
Property_and_Equipment_net
Property and Equipment, net | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Property and Equipment, net | ' | |||||||||
Property and Equipment, net | ' | |||||||||
4. Property and Equipment, net | ||||||||||
Property and equipment, net consists of the following (in thousands): | ||||||||||
Estimated Useful | September 30, | December 31, | ||||||||
Life Years | 2014 | 2013 | ||||||||
Laboratory equipment | 4 | $ | 434 | $ | 328 | |||||
Furniture and fixtures | 5 | 60 | 98 | |||||||
Office and computer equipment | 3 | 173 | 85 | |||||||
Leasehold improvements | Lesser of useful life or lease term | 2,430 | 79 | |||||||
3,097 | 590 | |||||||||
Less accumulated depreciation and amortization | (363 | ) | (350 | ) | ||||||
$ | 2,734 | $ | 240 |
Accrued_Expenses
Accrued Expenses | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Expenses | ' | |||||||
Accrued Expenses | ' | |||||||
5. Accrued Expenses | ||||||||
Accrued expenses consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Research and development costs | $ | 1,660 | $ | 698 | ||||
Payroll and employee-related costs | 1,228 | 100 | ||||||
Professional fees | 167 | 215 | ||||||
Other | 594 | 155 | ||||||
$ | 3,649 | $ | 1,168 |
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Net Loss Per Share | ' | |||||
Net Loss Per Share | ' | |||||
6. Net Loss Per Share | ||||||
Basic and diluted net loss per common share is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. The Company’s potentially dilutive shares, which include convertible preferred stock, outstanding stock options and unvested restricted stock are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. | ||||||
The following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect at September 30, 2014 and 2013: | ||||||
September 30, | ||||||
2014 | 2013 | |||||
Convertible preferred stock | — | 19,114,241 | ||||
Outstanding stock options | 2,942,927 | 1,775,593 | ||||
Unvested restricted stock | 78,015 | 224,019 | ||||
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Stock-based Compensation | ' | |||||||||||
Stock-based Compensation | ' | |||||||||||
7. Stock-based Compensation | ||||||||||||
During 2010, the Company established the 2010 Stock Incentive Plan (the “2010 Plan”). In October 2013, the Company adopted the 2013 Stock Incentive Plan (the “2013 Plan”). The 2013 Plan became effective upon the closing of the Company’s initial public offering (“IPO”) in November 2013. The 2013 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units and other stock-based awards. Upon effectiveness of the IPO, the number of shares of common stock that were reserved under the 2013 Plan was the sum of 969,696 shares plus 198,372, the number of shares available under the 2010 Plan. The number of shares reserved under the 2013 Plan is increased by the number of shares of common stock (up to a maximum of 2,126,377 shares) subject to outstanding awards under the 2010 Plan that expire, terminate or are otherwise surrendered, cancelled, forfeited or repurchased by the Company. The 2013 Plan also includes an “evergreen provision” that allows for an annual increase in the number of shares of common stock available for issuance under the 2013 Plan. The annual increase will be added on the first day of each year beginning in 2014 and each subsequent anniversary until the expiration of the 2013 Plan, and is equal to the lowest of: (i) 1,939,393 shares of common stock, (ii) 4.0% of the number of shares of common stock outstanding and (iii) an amount determined by the board of directors. On January 1, 2014, the shares available under the 2013 Plan increased by 1,190,149 shares of common stock. No additional awards may be granted under the 2010 Plan. | ||||||||||||
Restricted stock | ||||||||||||
A summary of the Company’s unvested restricted stock as of September 30, 2014 and changes during the nine months ended September 30, 2014 is as follows: | ||||||||||||
Shares | Weighted- | |||||||||||
average | ||||||||||||
purchase price | ||||||||||||
per share | ||||||||||||
Unvested at December 31, 2013 | 9,943 | $ | 0.26 | |||||||||
Vested | (4,261 | ) | 0.26 | |||||||||
Unvested at September 30, 2014(1) | 5,682 | $ | 0.26 | |||||||||
(1) Excludes 72,333 shares of unvested restricted stock remaining from the early exercise of stock options. | ||||||||||||
As of September 30, 2014, there was $199 of total unrecognized stock-based compensation expense related to unvested restricted stock. The expense is expected to be recognized over a weighted average period of 0.9 years. | ||||||||||||
Stock options | ||||||||||||
A summary of the Company’s stock option activity and related information follows: | ||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||
average | average | intrinsic | ||||||||||
price | remaining | value | ||||||||||
per share | contractual | (in thousands) | ||||||||||
term (years) | ||||||||||||
Outstanding at December 31, 2013 | 2,410,522 | $ | 7.85 | 9.3 | $ | 36,717 | ||||||
Granted | 627,600 | 38.73 | ||||||||||
Exercised | (94,342 | ) | 1.43 | |||||||||
Canceled | (853 | ) | 1.49 | |||||||||
Outstanding at September 30, 2014 | 2,942,927 | $ | 14.64 | 8.9 | $ | 62,329 | ||||||
Exercisable at September 30, 2014 | 668,114 | $ | 2.35 | 7.7 | $ | 21,776 | ||||||
Vested and expected to vest at September 30, 2014 | 2,749,715 | $ | 14.53 | 8.8 | $ | 58,507 | ||||||
As of September 30, 2014, there was $30,482 of total unrecognized stock-based compensation expense related to stock options. The expense is expected to be recognized over a weighted average period of 3.2 years. | ||||||||||||
In 2014 certain individuals changed status from employees to non-employees. The outstanding stock option awards for these individuals continued to vest under the original vesting terms of the awards as the individuals continued to provide service to the Company as consultants. In addition, in August 2014, the Company modified a stock option grant for one of these individuals to accelerate vesting of one of his stock option awards in connection with his separation agreement. The Company recorded expense of $1,100 in the third quarter of 2014 for the grants outstanding to these individuals. As of September 30, 2014, there was $466 of unrecognized compensation expense related to these awards that is expected to be recognized in the fourth quarter of 2014. | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||
The Company has an Employee Stock Purchase Plan (“ESPP”) that permits eligible employees to enroll in a twelve-month offering period comprising two six-month purchase periods. Participants may purchase shares of the Company’s common stock, through payroll deductions, at a price equal to 85% of the fair market value of the common stock on the first day of the applicable six-month offering period, or the last day of the applicable six-month purchase period, whichever is lower. Purchase dates under the ESPP occur on or about May 1 and November 1of each year. In 2013, the Company’s shareholders approved an increase in the number of shares of common stock authorized for issuance pursuant to the ESPP. There are 242,424 shares of common stock authorized for issuance pursuant to the ESPP, and no shares have been issued to employees under the ESPP to date. As of September 30, 2014, there was $10 of total unrecognized stock-based compensation expense related to the ESPP. The expense is expected to be recognized over a period of one month. | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies. | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
In March 2014, the Company entered into an operating lease for approximately 29,933 square feet of office and research space. The Company intends to use the leased premises as its corporate headquarters and for research and development purposes. The lease term commenced in May 2014 and expires in October 2021. The Company may extend the lease term for one additional five year period. Pursuant to the lease agreement, the Company is obligated to make aggregate rent payments of $5,600 through October 2021. There are no scheduled rent payments due for the first 23 weeks of the lease term. Thereafter, the Company has agreed to pay an initial annual base rent of approximately $506, which base rent rises periodically until it reaches approximately $898. The Company is recording rent expense on a straight-line basis through the end of the lease term, inclusive of the period in which there are no scheduled rent payment. The Company has recorded deferred rent on the condensed consolidated balance sheet at September 30, 2014, accordingly. The Company has agreed to pay for pro rata increases in operating expenses and property taxes. The lease provides the Company with an allowance for improvements of $1,000 which was incurred through September 30, 2014, was recorded as a leasehold improvement and deferred rent, and will be recorded as a reduction to rent expense ratably over the lease term. The balance from the leasehold improvement incentives is included in deferred rent on the balance sheets. The Company has provided a security deposit in the form of a cash-collateralized letter of credit in the amount of $400, which amount may be reduced to $200 in January 2018. The amount is classified as restricted cash on the condensed consolidated balance sheet. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2014 | |
Equity | ' |
Equity | ' |
9. Equity | |
In July 2014, the Company completed a public offering of its common stock, which resulted in the sale of 2,447,247 shares of its common stock at a public offering price of $42.50 per share. Also, in July 2014, the Company issued 397,087 shares of its common stock upon exercise by the underwriters of their option to purchase additional shares. The Company received net proceeds of approximately $112,800, after deducting underwriting discounts, commissions and expenses payable by the Company of $794. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of Karyopharm Therapeutics Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 10-01. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements. Actual results could differ from those estimates. Additionally, operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2014. For further information, refer to the financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission (“SEC”) on March 21, 2014. | |
Basis of Consolidation | ' |
Basis of Consolidation | |
The consolidated financial statements at September 30, 2014 include the accounts of Karyopharm Therapeutics Inc. (a Delaware corporation), the accounts of Karyopharm Securities Corp. (“KPSC”, a wholly-owned Massachusetts corporation of the Company incorporated in December 2013), and the accounts of Karyopharm Europe GmbH (a wholly-owned German Limited Liability Company, incorporated in September 2014). At December 31, 2013, the consolidated financial statements also included the accounts of NPM Pharma Inc. (“NPM”, a wholly-owned Canadian corporation of the Company). As of March 31, 2014, NPM transferred its remaining assets and liabilities to Karyopharm Therapeutics Inc. Following the transfer, NPM was dissolved. The dissolution of NPM had no effect on the consolidated financial statements. | |
Subsequent Events | ' |
Subsequent Events | |
The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The Company has completed an evaluation of all subsequent events through the date of the filing of this Quarterly Report on Form 10-Q, and has determined that no events or transactions require recognition or disclosure. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Schedule of financial assets measured at fair value and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value | ' | |||||||||||||
The following table presents information about the Company’s financial assets that have been measured at fair value at September 30, 2014 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): | ||||||||||||||
Description | Total | Quoted prices | Significant | Significant | ||||||||||
in active | other | unobservable | ||||||||||||
markets | observable | inputs | ||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||
(Level 2) | ||||||||||||||
Financial assets | ||||||||||||||
Money Market Funds, included in cash equivalents | $ | 219,067 | $ | 219,067 | $ | — | $ | — | ||||||
The following table presents information about the Company’s financial assets that have been measured at fair value at December 31, 2013 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): | ||||||||||||||
Description | Total | Quoted prices | Significant | Significant | ||||||||||
in active | other | unobservable | ||||||||||||
markets | observable | inputs | ||||||||||||
(Level 1) | inputs | (Level 3) | ||||||||||||
(Level 2) | ||||||||||||||
Financial assets | ||||||||||||||
Money Market Funds, included in cash equivalents | $ | 155,765 | $ | 155,765 | $ | — | $ | — |
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Property and Equipment, net | ' | |||||||||
Schedule of estimated useful lives of real estate assets | ' | |||||||||
Property and equipment, net consists of the following (in thousands): | ||||||||||
Estimated Useful | September 30, | December 31, | ||||||||
Life Years | 2014 | 2013 | ||||||||
Laboratory equipment | 4 | $ | 434 | $ | 328 | |||||
Furniture and fixtures | 5 | 60 | 98 | |||||||
Office and computer equipment | 3 | 173 | 85 | |||||||
Leasehold improvements | Lesser of useful life or lease term | 2,430 | 79 | |||||||
3,097 | 590 | |||||||||
Less accumulated depreciation and amortization | (363 | ) | (350 | ) | ||||||
$ | 2,734 | $ | 240 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Expenses | ' | |||||||
Schedule of accrued expenses | ' | |||||||
Accrued expenses consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Research and development costs | $ | 1,660 | $ | 698 | ||||
Payroll and employee-related costs | 1,228 | 100 | ||||||
Professional fees | 167 | 215 | ||||||
Other | 594 | 155 | ||||||
$ | 3,649 | $ | 1,168 |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Net Loss Per Share | ' | |||||
Schedule of potentially dilutive securities that were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect | ' | |||||
September 30, | ||||||
2014 | 2013 | |||||
Convertible preferred stock | — | 19,114,241 | ||||
Outstanding stock options | 2,942,927 | 1,775,593 | ||||
Unvested restricted stock | 78,015 | 224,019 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Stock-based Compensation | ' | |||||||||||
Summary of unvested restricted stock | ' | |||||||||||
Shares | Weighted- | |||||||||||
average | ||||||||||||
purchase price | ||||||||||||
per share | ||||||||||||
Unvested at December 31, 2013 | 9,943 | $ | 0.26 | |||||||||
Vested | (4,261 | ) | 0.26 | |||||||||
Unvested at September 30, 2014(1) | 5,682 | $ | 0.26 | |||||||||
(1) Excludes 72,333 shares of unvested restricted stock remaining from the early exercise of stock options. | ||||||||||||
Summary of stock option activity and related information | ' | |||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||
average | average | intrinsic | ||||||||||
price | remaining | value | ||||||||||
per share | contractual | (in thousands) | ||||||||||
term (years) | ||||||||||||
Outstanding at December 31, 2013 | 2,410,522 | $ | 7.85 | 9.3 | $ | 36,717 | ||||||
Granted | 627,600 | 38.73 | ||||||||||
Exercised | (94,342 | ) | 1.43 | |||||||||
Canceled | (853 | ) | 1.49 | |||||||||
Outstanding at September 30, 2014 | 2,942,927 | $ | 14.64 | 8.9 | $ | 62,329 | ||||||
Exercisable at September 30, 2014 | 668,114 | $ | 2.35 | 7.7 | $ | 21,776 | ||||||
Vested and expected to vest at September 30, 2014 | 2,749,715 | $ | 14.53 | 8.8 | $ | 58,507 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total | ' | ' |
Financial assets | ' | ' |
Money Market Funds, included in cash equivalents | $219,067 | $155,765 |
Quoted prices in active markets (Level 1) | ' | ' |
Financial assets | ' | ' |
Money Market Funds, included in cash equivalents | $219,067 | $155,765 |
Property_and_Equipment_net_Det
Property and Equipment, net (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Property and equipment, net | ' | ' |
Property and equipment, gross | $3,097 | $590 |
Less accumulated depreciation and amortization | -363 | -350 |
Property and equipment, net | 2,734 | 240 |
Laboratory equipment | ' | ' |
Property and equipment, net | ' | ' |
Estimated useful life | '4 years | ' |
Property and equipment, gross | 434 | 328 |
Furniture and fixtures | ' | ' |
Property and equipment, net | ' | ' |
Estimated useful life | '5 years | ' |
Property and equipment, gross | 60 | 98 |
Office and computer equipment | ' | ' |
Property and equipment, net | ' | ' |
Estimated useful life | '3 years | ' |
Property and equipment, gross | 173 | 85 |
Leasehold improvements | ' | ' |
Property and equipment, net | ' | ' |
Property and equipment, gross | $2,430 | $79 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses | ' | ' |
Research and development costs | $1,660 | $698 |
Payroll and employee-related costs | 1,228 | 100 |
Professional fees | 167 | 215 |
Other | 594 | 155 |
Total Accrued Expenses | $3,649 | $1,168 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Convertible preferred stock | ' | ' |
Net loss per share | ' | ' |
Amounts of potentially dilutive securities that excluded from the calculation of diluted net loss per share due to their anti-dilutive effect (in shares) | ' | 19,114,241 |
Outstanding stock options | ' | ' |
Net loss per share | ' | ' |
Amounts of potentially dilutive securities that excluded from the calculation of diluted net loss per share due to their anti-dilutive effect (in shares) | 2,942,927 | 1,775,593 |
Unvested restricted stock | ' | ' |
Net loss per share | ' | ' |
Amounts of potentially dilutive securities that excluded from the calculation of diluted net loss per share due to their anti-dilutive effect (in shares) | 78,015 | 224,019 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (2013 Plan) | 0 Months Ended | 1 Months Ended | |
Jan. 02, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | |
Minimum | Maximum | ||
Stock-based compensation | ' | ' | ' |
Number of shares of Common Stock reserved for issuance under the Plan | ' | 969,696 | ' |
Number of additional shares authorized under the 2010 Plan | ' | ' | 2,126,377 |
Annual increase in number of additional shares authorized under the Plan through December 31, 2023 | ' | 1,939,393 | ' |
Percentage applied to the outstanding shares as annual increase in the number of shares authorized for issuance | ' | 0.04 | ' |
Number of additional shares available under the 2013 plan | 1,190,149 | 198,372 | ' |
Stockbased_Compensation_Detail1
Stock-based Compensation (Details 2) (USD $) | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Unvested restricted stock | Stock options | Stock options | Stock options | ||
Shares | ' | ' | ' | ' | ' |
Unvested at the beginning of the period (in shares) | ' | 9,943 | ' | ' | ' |
Vested (in shares) | ' | -4,261 | ' | ' | ' |
Unvested at the end of the period (in shares) | ' | 5,682 | ' | ' | ' |
Weighted-average purchase price | ' | ' | ' | ' | ' |
Unvested at the beginning of the period (in dollars per share) | ' | $0.26 | ' | ' | ' |
Vested (in dollars per share) | ' | $0.26 | ' | ' | ' |
Unvested at the end of the period (in dollars per share) | ' | $0.26 | ' | ' | ' |
Shares of unvested restricted stock remaining from the early exercise of stock options | ' | 72,333 | ' | ' | ' |
Total unrecognized stock-based compensation expense related to unvested restricted stock | ' | $199 | ' | ' | ' |
Shares | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | 2,410,522 | ' |
Granted (in shares) | ' | ' | ' | 627,600 | ' |
Exercised (in shares) | -397,087 | ' | ' | -94,342 | ' |
Canceled (in shares) | ' | ' | ' | -853 | ' |
Outstanding at the end of the period (in shares) | ' | ' | 2,942,927 | 2,942,927 | 2,410,522 |
Options exercisable at the end of the period (in shares) | ' | ' | 668,114 | 668,114 | ' |
Options vested or expected to vest at the end of the period (in shares) | ' | ' | 2,749,715 | 2,749,715 | ' |
Weighted-average price | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | $7.85 | ' |
Granted (in dollars per share) | ' | ' | ' | $38.73 | ' |
Exercised (in dollars per share) | ' | ' | ' | $1.43 | ' |
Canceled (in dollars per share) | ' | ' | ' | $1.49 | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | $14.64 | $14.64 | $7.85 |
Options exercisable at the end of the period (in dollars per share) | ' | ' | $2.35 | $2.35 | ' |
Options vested or expected to vest at the end of the period (in dollars per share) | ' | ' | $14.53 | $14.53 | ' |
Weighted-Average Remaining Contractual Term | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | '8 years 10 months 24 days | '9 years 3 months 18 days |
Options exercisable at the end of the period | ' | ' | ' | '7 years 8 months 12 days | ' |
Options vested or expected to vest at the end of the period | ' | ' | ' | '8 years 9 months 18 days | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | 62,329 | 62,329 | 36,717 |
Options exercisable at the end of the period | ' | ' | 21,776 | 21,776 | ' |
Options vested or expected to vest at the end of the period | ' | ' | 58,507 | 58,507 | ' |
Total unrecognized stock-based compensation expense related to unvested stock options | ' | ' | 30,482 | 30,482 | ' |
Weighted average period for recognition of unrecognized expense | ' | '10 months 24 days | ' | '3 years 2 months 12 days | ' |
Stock-based compensation expense | ' | ' | 1,100 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | $466 | $466 | ' |
Stockbased_Compensation_Detail2
Stock-based Compensation (Details 3) (ESPP, USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 |
item | |
ESPP | ' |
Stock-based compensation | ' |
Offering period | '12 months |
Number of purchase period | 2 |
Purchase period | '6 months |
Purchase price of common stock (as a percent) | 85.00% |
Number of shares of common stock authorized (in shares) | 242,424 |
Shares of common stock issued (in shares) | 0 |
Total unrecognized stock-based compensation expense | $10 |
Period for recognition of unrecognized expense | '1 month |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 |
item | ||
sqft | ||
Commitments and Contingencies. | ' | ' |
Office and laboratory space leased (in square feet) | ' | 29,933 |
Number of additional lease term | ' | 1 |
Additional extension term of lease | ' | '5 years |
Scheduled rent payments due | ' | $5,600 |
Term of lease | ' | '161 days |
Initial annual base rent | ' | 506 |
Maximum rent until which base rent rises periodically | ' | 898 |
Allowance for improvements | 1,000 | ' |
Security deposit in the form of a letter of credit | ' | 400 |
Security deposit in the form of a letter of credit which may be reduced in January 2018. | ' | $200 |
Equity_Details
Equity (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Equity | ' | ' | ' |
Number of shares of common stock sold in public offering | 2,447,247 | ' | ' |
Public offering price of common shares (in dollars per share) | $42.50 | ' | ' |
Common stock issued upon exercise of option (in shares) | 397,087 | ' | ' |
Net proceeds after deducting underwriting discounts, commissions and expenses payable | $112,800 | $112,837 | $340 |
Issuance of stock, underwriting discounts, commissions and expenses | $794 | ' | ' |