Karyopharm Jumps on Deal with ONO

Karyopharm Therapeutics Inc (NASDAQ: KPTI) and ONO Pharmaceutical signed an exclusive license agreement to develop and commercialize selinexor and KPT-8602 in Japan and other countries in Asia.

The pact between ONO and the Newton, Mass.-based Karyopharm includes the development of selinexor and KPT-8602 for the diagnosis, treatment and/or prevention of all human oncology indications in Japan, South Korea, Taiwan, Hong Kong, and ASEAN countries (the Territory).

Under the terms of the agreement, Karyopharm will receive a one-time upfront payment of ¥2.5 billion (approximately $22.3 million U.S.) from ONO and retains all rights to selinexor and KPT-8602 outside the Territory.

Karyopharm is eligible to receive up to an additional ¥19.15 billion (approximately $170.7 million U.S. at the current exchange rate) if specified future development and commercial milestones are achieved by ONO.

Karyopharm is also eligible to receive low double-digit royalties based on future net sales of selinexor and KPT-8602 in the Territory. In exchange, ONO will receive exclusive rights to develop and commercialize both compounds in the Territory, at its own cost and expense.

ONO will also have the ability to participate in any global clinical study of selinexor and KPT-8602, and will bear the cost and expense for patients enrolled in clinical studies in the Territory.

Karyopharm CEO Michael Kauffman said “Given ONO’s established leadership in oncology, including Opdivo® (nivolumab) and Kyprolis® (carfilzomib) in Japan, we believe there is no company better suited to advance both selinexor and KPT-8602 in Japan and the other licensed territories.”

The shares gathered 28 cents, or 2.5%, toward the end of Thursday’s session to $11.66.