Karyopharm Therapeutics' Shares Slide After Biogen Terminates 2018 Asset Purchase Agreement

Biogen Inc. BIIB has informed Karyopharm Therapeutics Inc KPTI that it has opted to terminate the companies' Asset Purchase Agreement dated January 24, 2018, as amended.
As per the agreement, Karyopharm sold rights of its oral Selective Inhibitor of Nuclear Export compound KPT-350 and certain related assets to Biogen.
KPTI received an upfront payment of $10 million in 2018 and was eligible to receive additional payments of up to $207 million based on the achievement by Biogen of future specified development and commercial milestones.
KPTI was also eligible to receive tiered royalty payments that reach low double-digits based on future net sales.
Due to the termination of the agreement, Karyopharm is now not entitled to any milestone payments or royalties. However, it has certain rights relating to the purchased assets upon termination of the agreement.
Price Action: KPTI shares are trading lower by 3.74% at $4.38 during the post-market session on Wednesday, and BIIB closed higher by 1.59% at $197.26.