Karyopharm Gets Nasdaq Delisting Notice After Chapter 11 Filing

What happened

Karyopharm Therapeutics Inc., a Newton, Massachusetts-based drugmaker that trades on the Nasdaq Global Select Market under the symbol KPTI, disclosed in a Form 8-K filed November 5, 2026 that it received a written delisting notice from Nasdaq staff on November 4.

The company said Nasdaq's determination followed the voluntary Chapter 11 bankruptcy petitions filed November 2 by Karyopharm and its subsidiary KPT Texas LLC in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

According to the filing, Nasdaq cited three factors: the bankruptcy petitions and public-interest concerns raised by them, concerns about the residual equity interest of existing listed security holders, and concerns about the company's ability to sustain compliance with continued listing requirements. The company said it will not appeal.

Trading in Karyopharm common stock will be suspended at the opening of business on November 11, 2026, and Nasdaq will file a Form 25-NSE with the SEC to remove the securities from listing and registration. The company said its shares are expected to begin trading on an over-the-counter market on or after that date, under the symbol KPTIQ.

Karyopharm's shares closed at $0.0549 on the event date, down 8.5% from the prior close of $0.06, on volume of about 100.4 million shares — roughly 22 times the average daily volume of about 4.5 million, according to the price data.

The bankruptcy and what equity holders are told

The 8-K states that the Joint Prepackaged Chapter 11 Plan of Reorganization filed with the court on November 2, 2026 provides that holders of Karyopharm's common stock and its 0% Series A Convertible Perpetual Preferred Stock will not receive any payment or other distribution on account of those securities.

The company said it expects its existing equity securities will have no value and that holders will experience a complete loss on their investment. It also cautioned that trading in its securities during the bankruptcy cases is highly speculative and that trading prices may bear little or no relationship to actual recovery by securityholders.

The filing does not explain the underlying reasons the company entered Chapter 11 beyond referencing the petitions themselves.

What this means

A Form 8-K is a current report that a public company must file with the SEC to disclose material events between its regular quarterly and annual reports. Item 3.01 is the specific item used to report a delisting notice, a failure to meet a continued listing rule, or a transfer of listing — which is why this filing exists.

Delisting is not automatic when a company files for bankruptcy, but Nasdaq's listing rules (the filing cites Rules 5101, 5110(b) and IM-5101-1) give the exchange latitude to act when a bankruptcy filing raises concerns about the public interest and about whether the stock can keep meeting listing standards. A Form 25-NSE, which Nasdaq will file here, is the formal mechanism that removes a security from exchange listing and registration; in this case it is the exchange, not the company, filing it.

An over-the-counter, or OTC, market is a decentralized trading venue outside a formal exchange. Stocks there can still trade, but typically with less liquidity, wider spreads and less disclosure than on Nasdaq — which is why the ticker is expected to gain a 'Q' suffix, becoming KPTIQ, a convention used to flag a corporate event such as a bankruptcy.

The 0% Series A Convertible Perpetual Preferred Stock mentioned in the filing is a class of preferred shares that pays no dividend (the 0%) and can be converted into common stock; under the plan, it too receives nothing. In bankruptcy, common and preferred shareholders rank behind creditors, which is the mechanical reason the company can state plainly that existing equity is expected to be worthless.

Trading in the shares is expected to continue on an OTC market on or after November 11, but the company said there is no assurance that an OTC market will commence or be maintained. A previously disclosed stalking horse asset purchase agreement is referenced in the filing's risk factors but not described in detail in this 8-K.