KPTI - Karyopharm gains as Piper issues bullish remarks citing cancer drug

Karyopharm Therapeutics ( NASDAQ: KPTI ) added ~5% pre-market Thursday after Piper Sandler launched its coverage with an Overweight recommendation citing the potential of the company’s FDA-approved cancer therapy Xpovio.

The treatment is currently indicated with dexamethasone for adults with heavily pretreated multiple myeloma (MM) and for r/r diffuse large B-cell lymphoma (DLBCL), where its potential “is not exactly blockbuster material,” according to the analyst Christopher Raymond.

However, Raymond highlights Xpovio’s prospects in endometrial cancer (EC), myelofibrosis (MF) and myelodysplastic syndromes (MDS) for which studies are currently underway.

“In our view, at current levels, only one of these programs needs to work in order for the stock to see a significant re-rating,” the analyst added, issuing an $8 per share target on the stock.

According to the analyst, plans for Xpovio (selinexor) as maintenance therapy in patients with TP53 wild-type tumors in EC “has the highest likelihood of success.” Citing the catalyst setup for the indication, Raymond urges investors to Buy Karyopharm ( KPTI ) at current levels.

Seeking Alpha contributor, Biologics reaffirmed the Buy rating on KPTI in December, arguing that “the company will make the most of XPOVIO and/or be acquired at a premium valuation.”

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