Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 02, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | KPTI | |
Entity Registrant Name | KARYOPHARM THERAPEUTICS INC. | |
Entity Central Index Key | 1,503,802 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,243,412 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 43,908 | $ 58,358 |
Short-term investments | 82,903 | 117,275 |
Prepaid expenses and other current assets | 3,440 | 1,967 |
Total current assets | 130,251 | 177,600 |
Property and equipment, net | 2,991 | 3,483 |
Long-term investments | 49,598 | 33,878 |
Restricted cash | 484 | 482 |
Other assets | 299 | |
Total assets | 183,623 | 215,443 |
Current liabilities: | ||
Accounts payable | 2,193 | 3,808 |
Accrued expenses | 12,309 | 11,023 |
Deferred rent | 275 | 206 |
Other current liabilities | 175 | 95 |
Total current liabilities | 14,952 | 15,132 |
Deferred rent, net of current portion | 1,739 | 1,946 |
Total liabilities | 16,691 | 17,078 |
Stockholders' equity: | ||
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; 39,724,003 and 35,864,765 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 4 | 4 |
Additional paid-in capital | 506,125 | 455,170 |
Accumulated other comprehensive loss | (28) | (282) |
Accumulated deficit | (339,169) | (256,527) |
Total stockholders' equity | 166,932 | 198,365 |
Total liabilities and stockholders' equity | $ 183,623 | $ 215,443 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 39,724,003 | 35,864,765 |
Common stock, shares outstanding | 39,724,003 | 35,864,765 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Contract and grant revenue | $ 48 | $ 75 | $ 107 | $ 225 |
Operating expenses: | ||||
Research and development | 19,893 | 25,923 | 66,267 | 73,680 |
General and administrative | 5,897 | 4,762 | 17,407 | 16,318 |
Total operating expenses | 25,790 | 30,685 | 83,674 | 89,998 |
Loss from operations | (25,742) | (30,610) | (83,567) | (89,773) |
Other income: | ||||
Interest income | 311 | 239 | 926 | 647 |
Other income (expense) | 6 | (2) | (1) | (9) |
Total other income, net | 317 | 237 | 925 | 638 |
Net loss | $ (25,425) | $ (30,373) | $ (82,642) | $ (89,135) |
Net loss per share-basic and diluted | $ (0.69) | $ (0.85) | $ (2.28) | $ (2.51) |
Weighted-average number of common shares outstanding used in net loss per share-basic and diluted | 36,819,329 | 35,708,739 | 36,223,324 | 35,575,745 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (25,425) | $ (30,373) | $ (82,642) | $ (89,135) |
Comprehensive income (loss) | ||||
Unrealized gain (loss) on investments | (182) | 110 | 225 | 68 |
Foreign currency translation adjustments | 15 | 8 | 29 | (65) |
Comprehensive loss | $ (25,592) | $ (30,255) | $ (82,388) | $ (89,132) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net loss | $ (82,642) | $ (89,135) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 537 | 457 |
Net amortization of premiums and discounts on investments | 839 | 1,343 |
Stock-based compensation expense | 17,157 | 11,713 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other current assets | 412 | (1,080) |
Other assets | 774 | |
Accounts payable | (1,659) | (2,099) |
Accrued expenses and other liabilities | 1,101 | 3,602 |
Deferred rent | (138) | 771 |
Net cash used in operating activities | (64,393) | (73,654) |
Investing activities | ||
Purchases of property and equipment | (45) | (911) |
Increase in restricted cash | (85) | |
Proceeds from maturities of investments | 140,719 | 138,804 |
Purchases of investments | (122,681) | (262,474) |
Net cash provided by (used in) investing activities | 17,993 | (124,666) |
Financing activities | ||
Proceeds from the issuance of common stock, net of issuance costs | 31,463 | 90,830 |
Proceeds from the exercise of stock options and shares issued under employee stock purchase plan | 452 | 386 |
Net cash provided by financing activities | 31,915 | 91,216 |
Effect of exchange rate on cash | 35 | (6) |
Net decrease in cash and cash equivalents | (14,450) | (107,110) |
Cash and cash equivalents at beginning of period | 58,358 | 150,609 |
Cash and cash equivalents at end of period | 43,908 | 43,499 |
Supplemental disclosure of non-cash financing activity | ||
Property and equipment purchases included in accounts payable and accrued expenses | 505 | |
Vesting of restricted common stock | 111 | |
Deferred financing costs included in accounts payable | 40 | $ 52 |
Deferred financing costs included in accrued expenses | 258 | |
Issuance of common stock in other current assets | $ 1,883 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
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, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2016. 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, 2015 as filed with the Securities and Exchange Commission (“SEC”) on March 15, 2016. Basis of Consolidation The condensed consolidated financial statements at September 30, 2016 include the accounts of Karyopharm Therapeutics Inc. (a Delaware corporation), the accounts of Karyopharm Securities Corp. (a wholly-owned Massachusetts corporation of the Company incorporated in December 2013), the accounts of Karyopharm Europe GmbH (a wholly-owned German Limited Liability Company formed in August 2014), and the accounts of Karyopharm Therapeutics (Bermuda) Ltd. (a wholly-owned Bermuda subsidiary of the Company formed in March 2015). All intercompany balances and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 2. Recently Issued Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). The Company did not adopt any new accounting pronouncements during the three and nine months ended September 30, 2016 that had an effect on the Company’s condensed consolidated financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments Financial instruments, including cash, restricted cash, prepaid expenses and other current assets, accounts payable and accrued expenses are presented in the condensed consolidated financial statements at amounts that approximate fair value at September 30, 2016 and December 31, 2015. 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 Items classified as Level 2 within the valuation hierarchy consist of commercial paper, corporate debt securities and U.S. government agency securities. The Company estimates the fair values of these marketable securities by taking into consideration valuations obtained from third-party pricing sources. These pricing sources utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include market pricing based on real-time trade data for the same or similar securities, issuer credit spreads, benchmark yields, and other observable inputs. The Company validates the prices provided by its third-party pricing sources by understanding the models used, obtaining market values from other pricing sources and analyzing pricing data in certain instances. The following table presents information about the Company’s financial assets that have been measured at fair value at September 30, 2016 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Total Quoted Prices Significant Significant Financial assets Cash equivalents: Money market funds $ 15,864 $ 15,864 $ — $ — Investments: Current: Corporate debt securities 57,276 — 57,276 — Commercial paper 24,626 — 24,626 — U.S. government and agency securities 1,001 — 1,001 — Non-current: Corporate debt securities (one to two year maturity) 45,098 — 45,098 — U.S. government and agency securities (one to two year maturity) 4,500 — 4,500 — $ 148,365 $ 15,864 $ 132,501 $ — The following table presents information about the Company’s financial assets that have been measured at fair value at December 31, 2015 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Total Quoted Prices Significant Significant Financial assets Cash equivalents: Money market funds $ 49,172 $ 49,172 $ — $ — Investments: Current: Corporate debt securities 86,447 — 86,447 — Commercial paper 29,828 — 29,828 — U.S. government and agency securities 1,000 — 1,000 — Non-current: Corporate debt securities (one to two year maturity) 33,878 — 33,878 — $ 200,325 $ 49,172 $ 151,153 $ — |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Investments [Abstract] | |
Investments | 4. Investments The following table summarizes the Company’s investments as of September 30, 2016 (in thousands): Amortized Cost Gross Unrealized Gross Unrealized Fair Value Current: Corporate debt securities $ 57,286 $ 19 $ (29 ) $ 57,276 Commercial paper 24,627 1 (2 ) 24,626 U.S. government and agency securities 1,000 1 — 1,001 Non-current: Corporate debt securities (one to two year maturity) 45,052 77 (31 ) 45,098 U.S. government and agency securities (one to two year maturity) 4,500 — — 4,500 $ 132,465 $ 98 $ (62 ) $ 132,501 The following table summarizes the Company’s investments as of December 31, 2015 (in thousands): Amortized Cost Gross Unrealized Gross Unrealized Fair Value Current: Corporate debt securities $ 86,515 $ 4 $ (72 ) $ 86,447 Commercial paper 29,808 20 — 29,828 U.S. government and agency securities 1,000 — — 1,000 Non-current: Corporate debt securities (one to two year maturity) 34,019 2 (143 ) 33,878 $ 151,342 $ 26 $ (215 ) $ 151,153 At September 30, 2016 and December 31, 2015, the Company held 45 and 69 debt securities that were in an unrealized loss position for less than one year, respectively. The aggregate fair value of debt securities in an unrealized loss position at September 30, 2016 and December 31, 2015 was $70,518 and $117,851, respectively. There were no individual securities that were in a significant unrealized loss position or that had been in an unrealized loss position for greater than one year as of September 30, 2016 or December 31, 2015. The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the condensed consolidated statements of operations if the Company has experienced a credit loss and has the intent to sell the investment or if it is more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment, net consists of the following (in thousands): Estimated Useful September 30, December 31, Laboratory equipment 4 $ 538 $ 538 Furniture and fixtures 5 361 322 Office and computer equipment 3 366 360 Leasehold improvements Lesser of useful life or lease term 3,391 3,391 4,656 4,611 Less accumulated depreciation and amortization (1,665 ) (1,128 ) $ 2,991 $ 3,483 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consists of the following (in thousands): September 30, December 31, Research and development costs $ 8,276 $ 8,007 Payroll and employee-related costs 2,764 2,445 Professional fees 650 270 Other 619 301 $ 12,309 $ 11,023 |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 7. Net Loss Per Share Basic and diluted net loss per common share is calculated by dividing net loss 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 outstanding stock options and unvested restricted stock and restricted stock units, 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: Three and Nine Months Ended 2016 2015 Outstanding stock options 5,557,752 4,511,561 Unvested restricted stock units 451,600 — |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | 8. Stock-based Compensation Stock options A summary of the Company’s stock option activity and related information follows: Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2015 4,443,317 $ 19.91 8.2 $ 15,598 Granted 1,533,700 7.24 Exercised (69,228 ) 3.88 Canceled (350,037 ) 16.69 Outstanding at September 30, 2016 5,557,752 $ 16.81 7.94 $ 13,024 Exercisable at September 30, 2016 2,595,981 $ 17.10 7.12 $ 8,005 Vested and expected to vest at September 30, 2016 5,249,158 $ 17.03 7.85 $ 12,451 Total expense related to stock options for the nine months ended September 30, 2016 and 2015 was $13,758 and $11,470, respectively. As of September 30, 2016, there was $30,671 of total unrecognized stock-based compensation expense related to stock options. The expense is expected to be recognized over a weighted-average period of 2.47 years. Restricted stock units A restricted stock unit (“RSU”) represents the right to receive one share of the Company’s common stock upon vesting of the RSU. The fair value of each RSU is based on the closing price of the Company’s common stock on the date of grant. In November 2015, the Company granted RSUs with service conditions that vest in two equal annual installments provided that the employee remains employed with the Company. The following is a summary of RSU activity under the 2013 Stock Incentive Plan for the nine months ended September 30, 2016: Number of Weighted-Average Unvested at December 31, 2015 508,800 $ 17.39 Granted 25,000 8.06 Forfeited (42,500 ) 17.91 Vested (39,700 ) 11.71 Unvested at September 30, 2016 451,600 $ 17.32 The total expense related to RSUs for the nine months ended September 30, 2016 and 2015 was $3,246 and $0, respectively. As of September 30, 2016, $4,193 of unrecognized compensation costs related to unvested RSUs are expected to be recognized over a weighted-average period of 1.1 years. Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (“ESPP”) that permits eligible employees to enroll in a six-month offering period. 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 or last day of the applicable six-month offering period, whichever is lower. Purchase dates under the ESPP occur on or about May 1 and November 1 of each year. In 2013, the Company’s stockholders approved the reservation of 242,424 shares of the Company’s common stock for issuance under the ESPP, plus an annual increase to be added on the first day of each fiscal year, commencing on January 1, 2015 and ending on December 31, 2023, equal to the lesser of 484,848 shares of the Company’s common stock, 1% of the number of outstanding shares on such date, or an amount determined by the board of directors. For the nine months ended September 30, 2016 and 2015, the Company withheld $235 and $125, respectively, from employees on an after tax basis related to the purchase of 29,724 and 5,403 shares, respectively, of the Company’s stock under the ESPP. For the nine months ended September 30, 2016 and 2015, the Company recorded stock-based compensation expense related to the ESPP of $153 and $130, respectively. As of September 30, 2016, 508,184 shares of the Company’s common stock remain available for issuance under the ESPP. As of September 30, 2016, there was $17 of total unrecognized stock-based compensation expense related to the ESPP. The expense is expected to be recognized over a period of four months. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies In March 2014, the Company entered into an operating lease for approximately 29,933 square feet of office and research space in Newton, Massachusetts. The Company uses the leased premises as its corporate headquarters and for research and development purposes. The lease was amended on December 31, 2014 by extending the lease term of the lease from November 30, 2021 to September 30, 2022. The amendment provides for the expansion of the premises leased by the Company by approximately 16,234 square feet, and provides the Company with the rights of first offer to lease approximately 27,701 square feet of additional space. The Company may extend the lease term for one additional five year period. 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 payments. The Company has recorded deferred rent on the condensed consolidated balance sheets at September 30, 2016 and December 31, 2015, accordingly. The lease provides the Company with an allowance for improvements of $1,616, all of which was incurred in the first quarter of 2015. All improvements were deemed normal tenant improvements, were recorded as leasehold improvements and deferred rent and will be recorded as a reduction to rent expense ratably over the lease term. 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. In November 2014, the Company signed a five-year operating lease agreement in Munich, Germany for approximately 3,681 square feet of office space. The lease is for the period February 2015 through January 2020. Pursuant to the lease agreement, the Company is obligated to make aggregate rent payments of €374 (approximately $420), through January 31, 2020. 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 payments. The Company recorded rent expense totaling $280 and $299 for the three months ended September 30, 2016 and 2015, respectively, and $859 and $763 for the nine months ended September 30, 2016 and 2015, respectively. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | 10. Equity Controlled Equity Offering Sales Agreement On December 7, 2015, the Company entered into a Controlled Equity Offering Sales Agreement (the “Agreement”), with Cantor Fitzgerald & Co., as sales agent (“Cantor”), pursuant to which the Company may issue and sell, from time to time, through Cantor, shares of the Company’s common stock, up to an aggregate offering price of $50.0 million (the “Shares”). Under the Agreement, Cantor may sell the Shares by methods deemed to be an “at-the-market” offering as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), including sales made directly on The NASDAQ Global Select Market, on any other existing trading market for the Shares or to or through a market maker. In addition, under the Agreement, Cantor may sell the Shares by any other method permitted by law, including in privately negotiated transactions. The Company is not obligated to make any sales of the Shares under the Agreement. The Company or Cantor may suspend or terminate the offering of Shares upon notice to the other party and subject to other conditions. The Company will pay Cantor a commission of up to 3.0% of the gross proceeds from the sale of the Shares pursuant to the Agreement and has agreed to provide Cantor with customary indemnification and contribution rights. As of November 2, 2016, the Company had sold an aggregate of 5,365,228 Shares under the Agreement, for net proceeds of approximately $48.4 million. Of the $48.4 million of net proceeds, the Company received approximately $31.5 million in September 2016 from the sale of 3,527,599 of the Shares and approximately $15.4 million in October 2016 from the sale of 1,716,315 of the Shares. Approximately $1.9 million of the net proceeds we received in October 2016 were included in prepaid and other current assets as of September 30, 2016. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
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, 2016 are not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2016. 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, 2015 as filed with the Securities and Exchange Commission (“SEC”) on March 15, 2016. |
Basis of Consolidation | Basis of Consolidation The condensed consolidated financial statements at September 30, 2016 include the accounts of Karyopharm Therapeutics Inc. (a Delaware corporation), the accounts of Karyopharm Securities Corp. (a wholly-owned Massachusetts corporation of the Company incorporated in December 2013), the accounts of Karyopharm Europe GmbH (a wholly-owned German Limited Liability Company formed in August 2014), and the accounts of Karyopharm Therapeutics (Bermuda) Ltd. (a wholly-owned Bermuda subsidiary of the Company formed in March 2015). All intercompany balances and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). The Company did not adopt any new accounting pronouncements during the three and nine months ended September 30, 2016 that had an effect on the Company’s condensed consolidated financial statements. |
Fair Value of Financial Instr18
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets That Have Been Measured at Fair Value | The following table presents information about the Company’s financial assets that have been measured at fair value at September 30, 2016 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Total Quoted Prices Significant Significant Financial assets Cash equivalents: Money market funds $ 15,864 $ 15,864 $ — $ — Investments: Current: Corporate debt securities 57,276 — 57,276 — Commercial paper 24,626 — 24,626 — U.S. government and agency securities 1,001 — 1,001 — Non-current: Corporate debt securities (one to two year maturity) 45,098 — 45,098 — U.S. government and agency securities (one to two year maturity) 4,500 — 4,500 — $ 148,365 $ 15,864 $ 132,501 $ — The following table presents information about the Company’s financial assets that have been measured at fair value at December 31, 2015 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Description Total Quoted Prices Significant Significant Financial assets Cash equivalents: Money market funds $ 49,172 $ 49,172 $ — $ — Investments: Current: Corporate debt securities 86,447 — 86,447 — Commercial paper 29,828 — 29,828 — U.S. government and agency securities 1,000 — 1,000 — Non-current: Corporate debt securities (one to two year maturity) 33,878 — 33,878 — $ 200,325 $ 49,172 $ 151,153 $ — |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Investments [Abstract] | |
Summary of Investments | The following table summarizes the Company’s investments as of September 30, 2016 (in thousands): Amortized Cost Gross Unrealized Gross Unrealized Fair Value Current: Corporate debt securities $ 57,286 $ 19 $ (29 ) $ 57,276 Commercial paper 24,627 1 (2 ) 24,626 U.S. government and agency securities 1,000 1 — 1,001 Non-current: Corporate debt securities (one to two year maturity) 45,052 77 (31 ) 45,098 U.S. government and agency securities (one to two year maturity) 4,500 — — 4,500 $ 132,465 $ 98 $ (62 ) $ 132,501 The following table summarizes the Company’s investments as of December 31, 2015 (in thousands): Amortized Cost Gross Unrealized Gross Unrealized Fair Value Current: Corporate debt securities $ 86,515 $ 4 $ (72 ) $ 86,447 Commercial paper 29,808 20 — 29,828 U.S. government and agency securities 1,000 — — 1,000 Non-current: Corporate debt securities (one to two year maturity) 34,019 2 (143 ) 33,878 $ 151,342 $ 26 $ (215 ) $ 151,153 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): Estimated Useful September 30, December 31, Laboratory equipment 4 $ 538 $ 538 Furniture and fixtures 5 361 322 Office and computer equipment 3 366 360 Leasehold improvements Lesser of useful life or lease term 3,391 3,391 4,656 4,611 Less accumulated depreciation and amortization (1,665 ) (1,128 ) $ 2,991 $ 3,483 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consists of the following (in thousands): September 30, December 31, Research and development costs $ 8,276 $ 8,007 Payroll and employee-related costs 2,764 2,445 Professional fees 650 270 Other 619 301 $ 12,309 $ 11,023 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially Dilutive Securities Were Excluded From The Calculation of Diluted Net Loss Per Share Due to Their Anti-Dilutive Effect | The following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect: Three and Nine Months Ended 2016 2015 Outstanding stock options 5,557,752 4,511,561 Unvested restricted stock units 451,600 — |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity for Employees and Nonemployees | A summary of the Company’s stock option activity and related information follows: Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2015 4,443,317 $ 19.91 8.2 $ 15,598 Granted 1,533,700 7.24 Exercised (69,228 ) 3.88 Canceled (350,037 ) 16.69 Outstanding at September 30, 2016 5,557,752 $ 16.81 7.94 $ 13,024 Exercisable at September 30, 2016 2,595,981 $ 17.10 7.12 $ 8,005 Vested and expected to vest at September 30, 2016 5,249,158 $ 17.03 7.85 $ 12,451 |
Summary of RSU Activity | The following is a summary of RSU activity under the 2013 Stock Incentive Plan for the nine months ended September 30, 2016: Number of Weighted-Average Unvested at December 31, 2015 508,800 $ 17.39 Granted 25,000 8.06 Forfeited (42,500 ) 17.91 Vested (39,700 ) 11.71 Unvested at September 30, 2016 451,600 $ 17.32 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments - Schedule of Financial Assets That Have Been Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets | ||
Total | $ 148,365 | $ 200,325 |
Current [Member] | Corporate Debt Securities [Member] | ||
Financial assets | ||
Investments | 57,276 | 86,447 |
Current [Member] | Commercial Paper [Member] | ||
Financial assets | ||
Investments | 24,626 | 29,828 |
Current [Member] | US Government and Agency Securities [Member] | ||
Financial assets | ||
Investments | 1,001 | 1,000 |
Non-current [Member] | U.S. Government and Agency Securities (One to Two Year Maturity) [Member] | ||
Financial assets | ||
Investments | 4,500 | |
Non-current [Member] | Corporate Debt Securities (One to Two Year Maturity) [Member] | ||
Financial assets | ||
Investments | 45,098 | 33,878 |
Money Market Funds [Member] | ||
Financial assets | ||
Cash equivalents | 15,864 | 49,172 |
Level 1 [Member] | ||
Financial assets | ||
Total | 15,864 | 49,172 |
Level 1 [Member] | Money Market Funds [Member] | ||
Financial assets | ||
Cash equivalents | 15,864 | 49,172 |
Level 2 [Member] | ||
Financial assets | ||
Total | 132,501 | 151,153 |
Level 2 [Member] | Current [Member] | Corporate Debt Securities [Member] | ||
Financial assets | ||
Investments | 57,276 | 86,447 |
Level 2 [Member] | Current [Member] | Commercial Paper [Member] | ||
Financial assets | ||
Investments | 24,626 | 29,828 |
Level 2 [Member] | Current [Member] | US Government and Agency Securities [Member] | ||
Financial assets | ||
Investments | 1,001 | 1,000 |
Level 2 [Member] | Non-current [Member] | U.S. Government and Agency Securities (One to Two Year Maturity) [Member] | ||
Financial assets | ||
Investments | 4,500 | |
Level 2 [Member] | Non-current [Member] | Corporate Debt Securities (One to Two Year Maturity) [Member] | ||
Financial assets | ||
Investments | $ 45,098 | $ 33,878 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | $ 132,465 | $ 151,342 |
Gross Unrealized Gains | 98 | 26 |
Gross Unrealized Loss | (62) | (215) |
Fair Value | 132,501 | 151,153 |
Current [Member] | Corporate Debt Securities [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 57,286 | 86,515 |
Gross Unrealized Gains | 19 | 4 |
Gross Unrealized Loss | (29) | (72) |
Fair Value | 57,276 | 86,447 |
Current [Member] | Commercial Paper [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 24,627 | 29,808 |
Gross Unrealized Gains | 1 | 20 |
Gross Unrealized Loss | (2) | |
Fair Value | 24,626 | 29,828 |
Current [Member] | US Government and Agency Securities [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains | 1 | |
Fair Value | 1,001 | 1,000 |
Non-current [Member] | U.S. Government and Agency Securities (One to Two Year Maturity) [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 4,500 | |
Fair Value | 4,500 | |
Non-current [Member] | Corporate Debt Securities (One to Two Year Maturity) [Member] | ||
Summary of Investment Holdings [Line Items] | ||
Amortized Cost | 45,052 | 34,019 |
Gross Unrealized Gains | 77 | 2 |
Gross Unrealized Loss | (31) | (143) |
Fair Value | $ 45,098 | $ 33,878 |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Thousands | Sep. 30, 2016USD ($)Securities | Dec. 31, 2015USD ($)Securities |
Investments, Debt and Equity Securities [Abstract] | ||
Number of debt securities with unrealized loss position for less than one year | 45 | 69 |
Aggregate fair value of debt securities | $ | $ 70,518 | $ 117,851 |
Number of debt securities with unrealized loss position for greater than one year | 0 | 0 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,656 | $ 4,611 |
Less accumulated depreciation and amortization | (1,665) | (1,128) |
Property and equipment, net | $ 2,991 | 3,483 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 4 years | |
Property and equipment, gross | $ 538 | 538 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Property and equipment, gross | $ 361 | 322 |
Office and Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Property and equipment, gross | $ 366 | 360 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,391 | $ 3,391 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accrued Liabilities, Current [Abstract] | ||
Research and development costs | $ 8,276 | $ 8,007 |
Payroll and employee-related costs | 2,764 | 2,445 |
Professional fees | 650 | 270 |
Other | 619 | 301 |
Total Accrued Expenses | $ 12,309 | $ 11,023 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Potentially Dilutive Securities Were Excluded From The Calculation of Diluted Net Loss Per Share Due to Their Anti-Dilutive Effect (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 03, 2016 | Sep. 30, 2015 | |
Outstanding Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities excluded from the calculation of diluted net loss per share due to anti-dilutive effect (in shares) | 5,557,752 | 4,511,561 | 5,557,752 | 4,511,561 |
Unvested Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities excluded from the calculation of diluted net loss per share due to anti-dilutive effect (in shares) | 451,600 | 451,600 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity for Employees and Nonemployees (Detail) - Employee and Nonemployee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option activity, shares outstanding, at beginning of period | 4,443,317 | |
Stock option activity, shares granted | 1,533,700 | |
Stock option activity, shares exercised | (69,228) | |
Stock option activity, shares canceled | (350,037) | |
Stock option activity, shares outstanding, at end of period | 5,557,752 | 4,443,317 |
Stock option activity, exercisable at end of period | 2,595,981 | |
Stock option activity, vested or expected to vest at end of period | 5,249,158 | |
Weighted average exercise price, options outstanding at beginning of period | $ 19.91 | |
Weighted average exercise price, options granted | 7.24 | |
Weighted average exercise price, option exercised | 3.88 | |
Weighted average exercise price, option canceled | 16.69 | |
Weighted average exercise price, options outstanding at end of period | 16.81 | $ 19.91 |
Weighted average exercise price, options exercisable at end of period | 17.10 | |
Weighted average exercise price, option vested and expected to vest at the end of period | $ 17.03 | |
Weighted average remaining contractual life outstanding | 7 years 11 months 9 days | 8 years 2 months 12 days |
Weighted average exercise price exercisable | 7 years 1 month 13 days | |
Weighted average exercise price vested or expected to vest | 7 years 10 months 6 days | |
Aggregate intrinsic value outstanding | $ 13,024 | $ 15,598 |
Aggregate intrinsic value exercisable | 8,005 | |
Aggregate intrinsic value vested or expected to vest | $ 12,451 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)Rightshares | Sep. 30, 2015USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Right to received shares of common stock (shares) | Right | 1 | |
Employee stock purchase plan, amount withheld from employees | $ 235 | $ 125 |
Common stock available for payment related to tax withholding | shares | 29,724 | 5,403 |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 13,758 | $ 11,470 |
Total unrecognized stock-based compensation expense | $ 30,671 | |
Period for recognition of unrecognized expense | 2 years 5 months 19 days | |
Unvested Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 3,246 | 0 |
Total unrecognized stock-based compensation expense | $ 4,193 | |
Period for recognition of unrecognized expense | 1 year 1 month 6 days | |
ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 153 | $ 130 |
Total unrecognized stock-based compensation expense | $ 17 | |
Period for recognition of unrecognized expense | 4 months | |
Offering period | 6 months | |
Purchase price of common stock | 85.00% | |
Number of shares of common stock authorized | shares | 242,424 | |
Common stock shares available for issuance under ESPP | shares | 508,184 | |
Percentage of shares of common stock available for issuance | 1.00% | |
Employee stock purchase plan, description | In 2013, the Company's stockholders approved the reservation of 242,424 shares of the Company's common stock for issuance under the ESPP, plus an annual increase to be added on the first day of each fiscal year, commencing on January 1, 2015 and ending on December 31, 2023, equal to the lesser of 484,848 shares of the Company's common stock, 1% of the number of outstanding shares on such date, or an amount determined by the board of directors. | |
ESPP [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares available for issuance under ESPP | shares | 484,848 |
Stock-based Compensation - Su32
Stock-based Compensation - Summary of RSU Activity (Detail) - Unvested Restricted Stock Units [Member] | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares underlying RSUs, Unvested beginning balance | shares | 508,800 |
Number of shares underlying RSUs, Granted | shares | 25,000 |
Number of shares underlying RSUs, Forfeited | shares | (42,500) |
Number of shares underlying RSUs, Vested | shares | (39,700) |
Number of shares underlying RSUs, Unvested ending balance | shares | 451,600 |
Weighted-Average grant date fair value, Unvested beginning balance | $ / shares | $ 17.39 |
Weighted-Average grant date fair value, Granted | $ / shares | 8.06 |
Weighted-Average grant date fair value, Forfeited | $ / shares | 17.91 |
Weighted-Average grant date fair value, Vested | $ / shares | 11.71 |
Weighted-Average grant date fair value, Unvested ending balance | $ / shares | $ 17.32 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Nov. 30, 2014EUR (€)ft² | Mar. 31, 2014USD ($)ft²Lease | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($) | Nov. 30, 2014USD ($)ft² | |
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Office and laboratory space leased | ft² | 3,681 | 29,933 | 3,681 | |||||
Number of additional lease term | Lease | 1 | |||||||
Additional extension term of lease | 5 years | |||||||
Allowance for improvements | $ 1,616 | |||||||
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 | |||||||
Operating lease amendment, leased premises expansion | ft² | 16,234 | 16,234 | ||||||
Operating lease amendment, additional space | ft² | 27,701 | 27,701 | ||||||
Operating lease agreement term | 5 years | |||||||
Scheduled rent payments due | € 374 | $ 420 | ||||||
Total rent expense | $ 280 | $ 299 | $ 859 | $ 763 |
Equity - Controlled Equity Offe
Equity - Controlled Equity Offering Sales Agreement - Additional Information (Detail) - Cantor Fitzgerald & Co. [Member] - Controlled Equity Offering Sales Agreement [Member] - USD ($) | Nov. 02, 2016 | Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 07, 2015 |
Common Stock [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | |||||
Issuance of common stock, net of issuance costs | 3,527,599 | ||||
Net proceeds from sale of common stock | $ 31,500,000 | ||||
Subsequent Event [Member] | Common Stock [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | |||||
Issuance of common stock, net of issuance costs | 5,365,228 | 1,716,315 | |||
Net proceeds from sale of common stock | $ 48,400,000 | $ 15,400,000 | |||
Proceeds from issuance of common stock included in prepaid and other current assets | $ 1,900,000 | ||||
Maximum [Member] | |||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | |||||
Aggregate offering price | $ 50,000,000 | ||||
Percentage of commission of gross proceeds from the sale of Shares | 3.00% |