Karyopharm Therapeutics Files For Chapter 11 Bankruptcy Protection
Karyopharm Therapeutics has filed for Chapter 11 bankruptcy in Texas, seeking to restructure $276 million in debt and sell its assets following heavy operational losses and clinical trial setbacks.
American biopharmaceutical company Karyopharm Therapeutics, developer of the XPOVIO treatment, has voluntarily filed for Chapter 11 bankruptcy protection in Texas on November 2, 2026. The move aims to restructure its debt and sell core assets while maintaining operations as a debtor-in-possession.
To ensure business continuity during the reorganization, Karyopharm has requested approval for up to $110 million in debtor-in-possession financing, which includes $55 million in new capital from secured lenders. Alongside the filing, the company presented a restructuring support agreement identifying Irish biotechnology firm Ayrmid as the stalking horse bidder for a public auction process.
Under the proposed restructuring plan, existing common and preferred shares will be cancelled without compensation to current shareholders. Secured creditors and DIP lenders will receive equity in the reorganized company, cutting approximately $276 million in liabilities.
The bankruptcy filing follows severe financial strain, marked by an operating loss of $67 million in the second quarter of 2026 and dwindling cash reserves of about $65 million. The company missed an interest payment on convertible notes in late June and failed to repay a $15.8 million loan principal on September 10. Furthermore, disappointing clinical trial results triggered a 68.5% drop in the company stock price, shutting off public capital avenues.
