Karyopharm Files for Chapter 11 Restructuring, Reaches Merger Agreement With Ayrmid
Key Points
- Karyopharm has filed voluntary Chapter 11 petitions in Texas as part of a restructuring that includes a proposed merger with Ayrmid Ltd.
- The company secured commitments for up to $55 million in debtor-in-possession financing and expects to continue operating during the process.
- Completion of the merger through a Chapter 11 plan is targeted for the first quarter of 2027, subject to court approval.
Karyopharm Therapeutics has filed for Chapter 11 bankruptcy protection as part of a restructuring process that includes a proposed merger with Ayrmid Ltd. The companies have entered into a Restructuring Support Agreement with Karyopharm’s existing lenders, noteholders and other key stakeholders to advance the transaction.
The commercial-stage pharmaceutical company, which is developing cancer therapies for patients with multiple myeloma and myelofibrosis, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas. Karyopharm expects to pursue the merger through a Chapter 11 plan, with completion targeted for the first quarter of 2027, subject to court approval and other conditions.
The restructuring process will include court-supervised bidding procedures, allowing other interested parties to submit competing proposals for Karyopharm’s assets. The company said it intends to continue operating in the ordinary course of business while the process moves forward, with its focus remaining on advancing its clinical programs and supporting patients.
Karyopharm has also secured commitments for up to $55 million in debtor-in-possession financing from its existing secured lenders. Subject to court approval, the funding, together with cash generated through ongoing operations, is expected to support the business during the Chapter 11 proceedings and help meet financial obligations following the filing.
The proposed combination is intended to bring together Karyopharm’s marketed products, development pipeline and commercial capabilities with Ayrmid’s existing hematology portfolio. Ayrmid Chairman and CEO Joe Wiley say the companies have complementary businesses and a shared focus on addressing unmet needs in hematological disorders. He said the combination could establish a broader commercial-stage hematology company with opportunities for growth.
Karyopharm CEO Richard Paulson says the agreement provides a framework for pursuing a transaction that maximizes value for stakeholders while allowing the company to continue developing treatments for patients with multiple myeloma and myelofibrosis. Both companies indicated that maintaining business continuity and supporting employees and patients will remain priorities during the restructuring.
For more information, visit www.karyopharm.com.
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