Karyopharm Therapeutics filed for Chapter 11 bankruptcy as part of a plan to merge with Irish hematology biotech, Ayrmid.
Massachusetts-based Karyopharm’s financial woes came to a head in August, when the pharma’s second-quarter earnings showed it was hemorrhaging cash despite revenue from its multiple myeloma treatment Xpovio. At the time, company leadership said its cash runway was only enough to cover another month.
The post-bankruptcy merger offers the struggling pharma a way to keep its multiple myeloma and myelofibrosis pipeline alive.
The deal with Ayrmid names the biotech—parent company of blood cancer biotech Gamida Cell—as the lead bidder in a court-supervised sale of Karyopharm’s assets. The terms of Ayrmid’s offer were not disclosed, and the merger isn’t final.
The bidding structure—if approved by the court—will allow for other parties to submit competing proposals, an approach that Karyopharm hopes will maximize value for its stakeholders. The transaction is expected to close in the first quarter of 2027.
In the meantime, Karyopharm said it had secured commitments for up to $55 million in debtor-in-possession financing from its existing lenders. The loans must first be approved by the court, but Karyopharm said the financing plus Xpovio revenue would be enough to continue operations during the Chapter 11 process.
“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," Ayrimd's chairman and CEO, Joe Wiley, said in a statement.
Arymid currently has two FDA-approved products. Cell therapy Omisirge is approved for patients 12 and older with blood cancers to reduce the risk of infection with umbilical cord transplantation, and for patients 6 years and older with severe aplastic anemia (SAA). In 2023, Arymid also secured an approval for Aphexda in patients with multiple myeloma to help with stem cell retrieval.
Karyopharm CEO Richard Paulson said in a statement: "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.”
The restructuring plan comes at the end of a rocky year for Karyopharm. In March, the pharma’s lead asset, first-in-class XPO1 inhibitor Xpovio, met only one of the two primary endpoints in its critical phase 3 for myelofibrosis. Despite leadership assurances that the results were enough to move forward with an FDA filing, investor confidence was rocked and shares fell sharply.
In May, the FDA rescinded Xpovio’s accelerated approval in relapsed or refractory diffuse large B-cell lymphoma (DLBCL), and two months later a second try at an Xpovio phase 3 trial in endometrial cancer failed to meet its primary endpoint of progression-free survival, sending stock price down by more than 68%.
These blows hit while Karyopharm's purse strings were already tight. The pharma cut its staff by 20% in 2023 due to lower than expected revenue for Xpovio, and another 20% reduction hit last year.
Xpovio was initially approved in 2019 as a fifth-line therapy for multiple myeloma. Sales for the drug were up slightly in the second quarter at $30.8 million, compared to $29.7 million at the same time in 2025. Annual sales for the drug have remained stagnant, between $112 million and $115 million, since 2023.
In August, Karyopharm applied for FDA accelerated approval for Xpovio in combination with Incyte's Jakafi for patients with myelofibrosis. Amid the restructuring, Karyopharm said it “remains focused on its commitment to advancing its multiple myeloma and myelofibrosis programs.”