Karyopharm Files for Chapter 11 to Pursue Merger With Ayrmid, Wiping Out Stockholders

Karyopharm Therapeutics Inc. (Nasdaq: KPTI) said it has filed for Chapter 11 bankruptcy protection and entered a Restructuring Support Agreement with its existing lenders, noteholders and other key stakeholders, in an 8-K filed Monday, Nov. 2, 2026. The deal provides for a merger between Ayrmid Ltd. and a reorganized Karyopharm.

Equity holders would be wiped out

The filing is blunt about shareholders. The company said the plan provides that holders of its common stock and Convertible Preferred Stock will not receive any payment or other distribution. It said it expects its existing equity securities to have no value, and that holders would experience a complete loss on their investment. The company also urged extreme caution in trading its securities, which it said are highly speculative and may bear little or no relationship to any eventual recovery.

The shares closed at $0.66 on Friday, Oct. 30, 2026, giving the company a market value of about $15.0 million before the filing.

Financing and the court process

Karyopharm said it has secured commitments for up to $55 million in debtor-in-possession financing from its existing secured lenders. That is more than three times the pre-filing market value. The company said the financing, once approved by the court, combined with cash from operations, is expected to fund the business during the case. It reported cash and equivalents of $55.0 million and short-term investments of $10.1 million as of June 30, 2026, or $65.1 million together.

The company will ask the court to approve bidding procedures that would let other parties submit competing proposals for its assets. Ayrmid will serve as lead bidder in that sale process, according to the press release attached to the filing. Interested parties were directed to Centerview Partners.

Weaker results heading into the filing

The filing came after a difficult stretch in reported results. For the quarter ended June 30, 2026, revenue was $33.4 million, down 12% from a year earlier. The net loss was $67.0 million, or $2.32 per diluted share, wider than the $37.3 million loss in the same quarter of 2025. For fiscal 2025, the company reported revenue of $146.1 million, up 0.6%, and a net loss of $196.0 million, compared with $76.4 million in 2024.

Timeline and listing

The company expects the Transaction to close in the first quarter of 2027, subject to conditions in the Chapter 11 plan. The company's forward-looking statements list the expected delisting of its common stock from the Nasdaq Global Select Market as a risk, and the filing does not give a delisting date. Additional case information is available from Stretto, the company's claims agent.