Morgan Stanley Reiterates Equalweight Rating on Karyopharm Therapeutics (KPTI), 'lack of potential takeout news likely to disappoint'
Morgan Stanley analyst Michael Ulz reiterated an Equalweight rating and $10.00 price target on Karyopharm Therapeutics (NASDAQ: KPTI).
The analyst comments "CMO departure surprising, but lack of potential takeout news likely to disappoint. This morning, Karyopharm announced several changes to the clinical leadership team. Most notable, Jatin Shah, EVP and CMO for the past 5 years, is leaving to pursue other opportunities (details not provided), but will remain an advisor to the company;and the process to find a replacement is underway. Additionally, two experienced industry veterans were added to the clinical leadership team including Patricia Judson (SVP of Medical Strategy) and Stuart Poulton (SVP of Strategy and Portfolio Management). Overall, while we are encouraged by the addition of two accomplished leaders to the clinical team, we view the departure of the CMO as somewhat unexpected. That said, we expect focus on the lack of potential takeout news,a topic that we had received questions about from investors, to pressure KPTI shares. Recall, late last week, Karyopharm at the last minute withdrew from a competitor’s conference. Pera Bloomberg report, the company made the decision because of scheduling difficulties. Bloomberg also noted that “the company has been considered an M&A target in years past,”and the withdrawal from the conference led some investors to consider that a potential takeout announcement could be possible. We believe today’s news indicates that was not the case. (The company did not comment on the Bloomberg report.)"
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Shares of Karyopharm Therapeutics closed at $14.38 yesterday.