NEWTON, Mass.–Karyopharm Therapeutics Inc. (Nasdaq: KPTI), a Massachusetts-based pharmaceutical company developing cancer treatments, has filed for Chapter 11 bankruptcy protection and announced a proposed merger with Ayrmid Ltd. as part of a financial restructuring aimed at preserving its operations and advancing its drug development programs.
The company said Monday that it has entered into a Restructuring Support Agreement with its existing lenders, noteholders and other key stakeholders. Under the agreement, Ayrmid would merge with a reorganized Karyopharm following a court-supervised sale process.
Karyopharm filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate the proposed transaction.
The company expects to complete the restructuring and merger during the first quarter of 2027, subject to bankruptcy court approval and other conditions.
As part of the process, Ayrmid will serve as the lead bidder, establishing an initial proposal against which other interested parties may submit competing offers for Karyopharm’s assets.
Karyopharm said it intends to continue normal business operations throughout the restructuring, including supporting patients receiving its treatments and advancing clinical programs focused on multiple myeloma and myelofibrosis.
“Following a comprehensive review of available alternatives, we believe this process provides a clear framework to pursue a value maximizing transaction for our stakeholders while continuing our important work of advancing therapies for patients with multiple myeloma and myelofibrosis,” said Richard Paulson, President and Chief Executive Officer at Karyopharm. “We are pleased to have signed an agreement with Ayrmid, a company committed to advancing meaningful therapies for patients with hematological disorders. Ayrmid’s proposal underscores the strategic interest in our programs and establishes a strong foundation as we move through this process designed to maximize value. Throughout, we will remain focused on supporting our employees, maintaining continuity across the business, and advancing our mission to improve the lives of patients.”
To support operations during the bankruptcy proceedings, Karyopharm has secured commitments for up to $55 million in debtor-in-possession financing from its existing secured lenders.
The financing, which requires court approval, is expected to provide additional liquidity alongside cash generated from ongoing operations.
According to the company, the funds will help cover expenses and financial obligations incurred after the bankruptcy filing while the restructuring moves forward.
Karyopharm is a commercial-stage pharmaceutical company focused on developing and marketing treatments for cancer and other serious diseases, particularly blood-related malignancies.
Its development programs include therapies targeting multiple myeloma, a cancer affecting plasma cells, and myelofibrosis, a bone marrow disorder that disrupts normal blood cell production.
Ayrmid said the proposed merger would combine complementary drug portfolios and commercial capabilities, potentially creating a larger business focused on hematological diseases.
“We see a strong strategic fit between Ayrmid and Karyopharm, with complementary portfolios, established commercial capabilities and a shared commitment to addressing significant unmet needs in hematology,” said Dr. Joe Wiley, Chairman and Chief Executive Officer of Ayrmid. “We see considerable potential in Karyopharm’s marketed products, development pipeline and experienced team, and believe that, together, we can build a broader, stronger commercial-stage hematology business with meaningful opportunities for future growth. Subject to the successful completion of the transaction, we look forward to working with the Karyopharm team to realize that potential and continue delivering important therapies to patients in need.”
The restructuring agreement establishes a framework for the proposed merger but does not guarantee that Ayrmid will ultimately acquire the company.
Karyopharm plans to seek court approval for bidding procedures that would allow other potential buyers to submit competing proposals. The final transaction will depend on the outcome of that process and approval of a Chapter 11 reorganization plan.
The company said it expects to maintain its existing business relationships and continue working with partners involved in patient care and drug development during the proceedings.
Karyopharm has retained Sidley Austin LLP as legal counsel, Centerview Partners LLC as investment banker and FTI Consulting Inc. as financial and communications advisor.
An ad hoc group of lenders and noteholders is being advised by Latham & Watkins LLP, Haynes and Boone LLP and Houlihan Lokey Capital Inc.
Ayrmid is represented by Paul Hastings LLP.
The proposed restructuring represents a significant transition for Karyopharm as it seeks to address its financial obligations while maintaining its commercial operations and clinical development programs.
