Karyopharm Therapeutics (KPTI) Wild Ride Occurring as M&A Speculation Proved Wrong Amid Executive Departure - RBC
RBC Capital analyst Brian Abrahams weighed in on Karyopharm Therapeutics (NASDAQ: KPTI) amid the recent turbulence in the stock, including the 20% up move on Friday on the conference cancellation, which triggered M&A speculation, and today's 31% downdraft on the departure of CMO Dr. Jatin Shah.
While Shah's departure is negative, management does not expect any major disruption due to their existing clinical trial leadership, the analyst commented.
"We believe some of these personnel changes could have contributed to their conference cancellation last week, and believe the Street perceptions that this, rather than imminent M&A, was the primary reason, is likely what is leading to today's downside - although the company reiterated that the scheduling change was due to competing priorities," Abrahams commented.
The firm reiterated a Sector Perform rating and $12.00 price target on KPTI.
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Shares of Karyopharm Therapeutics closed at $14.38 yesterday.