Karyopharm Therapeutics (NASDAQ: KPTI)

Worst CEO, CFO, Legal Counsel in Biotech Industry

Richard Paulson, the man responsible for burning through millions of shareholder funds, destroying shareholder value, and providing catered free daily lunch to all employees, and providing other perks to the benefit of the insiders, and making 6-figure donations. All paid by shareholders since the company is still losing money like crazy. 

DISCLAIMER: This is a private undertaking by Reza Ganjavi, MBA. This page is not sponsored by Karyopharm. This page is not an investment advice. Do your own research.


In my opinion Karyopharm has the worst CEO, CFO and Legal Counsel in biotech / healthcare industries: Richard Paulson (CEO), Mike Mason (CFO), Mike Mano (Legal Counsel).

The co-founder, Michael Kauffman was a disastrous, incompetent CEO. On his watch the company's shareholder value tanked. On CEO Richard Paulson's watch the shareholder value tanked even more, while the useless Board of Directors gave themselves and management fat salaries and undeserved bonuses. The company continued the culture of spending like it's the Khalifa's treasure chest -- a sick spending culture that was inherited from Michael Kauffman's days of total mismanagement of company funds: the company continued making 6-figure donations; they provided catered free lunch for all employees, every day -- and we're talking about hundreds of employees -- paid by shareholders. Their attitude towards shareholders was their ATM machines, which they went to when they needed cash, and walked away effectively flipping the shareholders. How do you expect Wall Street and other investors trust this management team, this sick culture, which Richard Paulson maintained because it was profitable for himself and the Board (who doesn't like a free lunch, a 7 figure salary and bonuses)? Paulson inherited that culture and sustained and maintained and perpetuated it by keeping Mike Mason and Mike Mano whose caliber for what Karyopharm needs is questioned by myself and some other investors, including someone who worked with Mike Mano. They both have been disasters, like that horrible CEO Richard Paulson -- all in my opinion. 

So the stock tanked from a secondary they did not too long ago in the 20's -- to 15's - to 10's and now it's struggling in the 1's and it even went below $1 for a while and risked being delisted from NASDAQ. That's what horrible, ineffective management can do to a company with great science. 

Of course, horrible management likes to point the finger outside - blame it on this and that. But these clowns dropped the ball so many times by e.g. over spending, not cutting costs in a timely manner, totally ignoring organized, professional disparagement orchestrated by hedge fund shorts through their shills including some medical doctors -- that hurt their sales.

I used to provide and track news, analysis, commentary on this page but shifted gear after I came to the conclusion that this company is hopeless as long as this lousy management team is running it. Of course there are also competent people in the management team, like Sohanya Cheng and Rashma Rangwala, but you can't run a company with such weak CEO, CFO and Legal Counsel. 

Some updates provided below. I wrote a lot of letters to the company -- and by our investor group - and we warned Richard Paulson when the stock was $10 but he ignored us and now the stock is $1. Congrats to horrible management who have made a killing paying themselves a ton of money. But they're ultimately losers because their stock options could have been worth a lot more.

Future? They have important phase 3 data coming up but I am not putting money on this team as they will probably screw up the good data because of their incompetence, just as before. The gang that can't shoot straight. In my opinion.   


16 June 2024 - From $9.50 to $0.95 Cent confirms the lousiest Board of Directors, CEO, CFO, Legal Counsel in Biotech - just in my humble opinion.

Since Richard Paulson became a CEO in May of 2021, the stock has gone from $9.50 which is roughly where it was when he came, to 95 cents. Well done sucker. Meanwhile, he's raked in over 3 million dollars for such an extraordinary performance! Some of the other insiders and all the Board members have made huge undeserved money while shareholders lost their shorts and shorts celebrated such a pathetically incompetent management (with exception). He was well warned, and there was a lot he could do to prevent this disaster, but you can't expect better from a self-serving gang who can't shoot straight. Just in my opinion.

13 June 2024

Dr. DD wrote they have $12 million a month of net loss. What else is new? Spending money is their forte. And the restructuring the debt just gave them enough money to burn as they feed their fat faces with shareholder supplied daily catered free lunches and make 6-figure donations while telling the world selinexor is profitable and they'll have 2 bil sales but in reality booking 12m/month of losses. What else would you expect from such weak CEO, CFO, Legal Counsel and a self-serving Board?

10 June 2024

Dr. Due Diligence made a posting about the letters he's written to management. I and some investor friends were sending letters to management and Board way before then, because we saw this disaster coming, and it could have been prevented if the company was run by a competent CEO, CFO, Legal Counsel and Board of Directors. I have to tell loser management "I told you so".


Dr. DD. Some of us went through this a few years ago - I know you've been "fighting" too and that's good. But looking back, Richard Paulson and the Board got warnings, tips, constructive feedback, you name it, from some of us when the stock was 10 times higher but the self serving, incompetent bozos didn't listen -- remember: when you're in charge of a publicly traded company, your competence and performance is measured by how well you can build shareholder value. Karyopharm's problem is not their science but a pathetically incompetent some members of the Board and some members of the executive management team.  When a company management forgets that it was hired to drive shareholder value and not its personal interests, share price gets destroyed like KPTI has. They have their priorities backwards. What's for free catered lunch today, to feed their faces, paid by shareholders? Champaign, caviar, lobster and organic shrooms? 

9 June 2024

Richard Paulson having stock doesn't mean anything. He's still taking home over $1 million a year as long as this effed up gig is ongoing. Same with the Board. Priority was always self sustenance IMHO, that's why he held onto Mike Mano and Mike Mason who carried on the dysfunctional culture of Michael Kauffman, a total failure as CEO, and the only other company that he had run had gone bankrupt. But that culture was, and is extremely lucrative for the insiders. Daily free catered lunch for everybody is just one minuscule example. Making six-figure donations while accompanies bleeding cash is just another small example. A strong CFO would never let that happen. The Board and Paulson didn't want fundamental change. Their performance and result of the incompetent running of the company is reflected in the destruction of shareholder value. Competence matters. And the Board member who just liquidated, no shame in selling prior to bad news, again, as it appears.

8 June 2024

Board member sold out.  More unwinding from Deepika Pakianathan of Delphi Ventures. Second time in a few days. Last time she sold at around $6 right before before Siendo bad news that sent the stock tanking, the stock went to $1. Maybe she's putting the money in her dark pools. There's a recent article about Delphi Ventures and Dark Pools. 

1 May 2025

New SA article apparently by bottom feeders attempting to pump to dump below 1.50 again. Funny how no mention of the overhanging debt that the lousy management has accumulated and it seems perfectly inept to deal with it and will probably, once again, throw shareholders under the bus. It seems to be part of the culture: shareholders come last. How many times they've diluted and treated shareholders as ATM machines, to turn around and effectively flip them as they spent the shareholder money like crazy -- making 6-figure donations, feeding their faces with free daily catered lunches, perks and parties, etc. - which screams: this is not a management team to be trusted in the job they're there to do: building shareholder value. Add to it the useless Board which explicitly endorsed the worst and weakest part of the management team who have led the company in this hole. All in my opinion. 


2 May 2024 in response to someone who asked for an opinion: 

Bad management has screwed up good science; further evidence of good science will probably be screwed up by the same gang who can't shoot straight. The useless Board and the management have repeatedly betrayed and thrown shareholders under the bus, while paying themselves hefty, undeserved sums, giving away six-figure donations, feeding their faces with daily catered free lunches for all employees, while they continue to amass huge losses. 

6 May 2024

Wow from 91% down to 62% institutional ownership. Well done Richard Paulson, Mike Mason, Mike Mano, the gang that can't shoot straight. In my opinion. 

Revenue: 33m, 5m lower than 2023Q1. Expenses/costs/interest: 73m. They burned 40 million of cash if I calculated this correctly. That's 160 m cash to burn per year and they have 150m in cash. Means they'll probably dilute. Good science but a financial disaster because of inept management. All in my opinion.

8 May 2024

Incompetent management that has destroyed hundreds of millions in shareholder value just bought itself more time to feed its face with more catered free lunches paid by shareholders.

13 May 2024 - Humor

Somone wrote in response to someone else asking if management changed since 2019

"while bew team of no bodies: got one Past Blue Ribbon lovin canyck, one part time belly dancer, one half ass legal cancel and an accountant slash valet boy  they could t organize a lemonaid stand…..but lets ride"

Trust Issue

Short interest up - over 23 million shares! In my view the problem with demand is because of lack of trust in this management's ability to execute and serve shareholders instead of serving themselves. Without serious institutional buying or short covering the stock's not going anywhere. And neither of those streams seem to be present presently. I bet a new CEO and CFO or removal of some of the dead wood from the BoD could help.

Does Management Really Want To Sell? 


I think part of this creepy management team is that they do not want to sell the company because you can be sure that the acquirer will fire the CEO, CFO and the legal counsel. They may keep some of the scientific people.


And these guys’ resume is taking a company with such a high valuation and basically decimating shareholder value, so I think they're going to have a hard time finding another job with that kind of track record especially a job that pays Richard Paulson more than a million dollars a year and Mike Mano and Mike Mason some I don't remember $600,000 a year plus. Plus free daily catered lunches followed by air guitar and digital pinball practice haha (just ask the king of satire Longrigger).


And the same goes with the board of directors. They got it made. It's a ATM machine that keeps giving to them and keeps taking from shareholders. Most of them are the same useless directors who sat there “directing” the company when the stock was in the 20’s.

I don't think they're motivated to sell the company, because the status quo is very profitable for them. And if they're thinking of going-it-alone, they will screw that up to as they have already. Management matters. Good management that has balls even impacts market demand when there is professional organized disparagement. Not the case for this gang who can't shoot straight when it comes to building shareholder value. 


All these are just my opinions / impressions.

More Reflections On The Conference Call

It is so moronic for a CEO and CFO to make six figures donations when the company is bleeding cash and losing so much money. It tells you something about how horrible how irresponsible this management team is. And it shows their attitude towards the whole subject of funding and money and shareholders.


It tells me that these guys don't give a damn about shareholders. Just listen to the way Mike Mason was talking on the last call, which gave me the impression of “Is it over yet? I really don't want to do this. I don't like to be accountable to shareholders. Shareholders are not important. As long as we can go to them to raise funds when we need it, like we have done so many times in the past. As long as we can continue feeding our faces with free catered lunches paid by shareholders. And we think money keeps coming, so we can just write six figure checks for donations. We have data coming up that we rely on to be opportunistic to raise more money so we can write more 6 figure donations. And I’m so proud of the cost savings we did which was too little too late. We’re still bleeding cash but that’s the shareholders’ problem.” – of course he didn’t say these things but that’s what I believe he may be thinking.


This is why the stock is so low. It's lack of trust in this management team. Even if they get great data they will still probably blow it because of their reckless attitude towards money and their incompetence in certain areas like countering professional disparagement of their products.


And they are so naive and so incompetent and so arrogant to think that they will get have success in sales if they get more approvals. We saw how they screwed up last approvals, and did nothing to counter the professional disparagement which I believe hurt the sales, because they are weak in certain areas. They’re too naïve and incompetent to see this, in my opinion. They’re a dream come true for short-and-distort cabal who still got the company by its private parts.


Pretty funny to hear Mike Mason talk about being opportunistic in the future. I hope he will look for another job and spare us of his opportunistic maneuvers which will probably be just another screwup. Look at the result of their opportunistic actions of the past. People who believe them by buying their stock in the twenties are holding the bag at a buck. Because this management has been nothing but disaster, in my opinion, as judged by the destruction of shareholder value.


I know several shareholders who feel this way. Somebody that I only know by nickname wrote on a message board recently that he hopes that the company fails so that the horrible management cannot get jobs somewhere else, so that they get they go down with the company. That's how strongly some people dislike this management team.


I finally had a chance to listen to the call. OMG, Mike Mason's presentation was the worst, as usual. Funny they put the horrible CFO at the end. As usual he sounded like he was hating being on the call and being accountable to shareholders. He sounded like "let me go play my air guitar". Can't believe they're bragging about their cost savings while they're burning cash like there's no tomorrow. And that sales are "profitable". Are you kidding? They're losing money like hell. Ok, I'll give it to Sohanya - her organization is making a profit I guess but the rest of the company is bleeding cash. Mike Mason talked about responsible spending which is total BS. He forgot about all the 6-figure donations they're used to giving and all the free daily catered lunches they feed their faces with. I loved Reshma's presentation and "area of hyper focus" and "eye of the storm".  The science is awesome -- in the hands of a horrible CFO and a CEO I do not trust. All the above are in my opinion

Listening to CFO Mike Mason was like pulling teeth as usual 


The CFO sounds/looks like he hates shareholders, and accountability to shareholders, and public speaking, and comes across as so arrogant, as though he's managing his dad's private money. Him talking about being opportunistic regarding the huge debt, was a good joke. We saw how miserably they mismanaged the company's assets for years, and lost so much money while giving 6 figure donations, and feeding their faces with free daily catered lunches. 

CEO Richard Paulson is just as ineffective in my opinion. He let this nightmare go on, while hiding behind his funny beard, cashing in bigtime salary and bonuses. 

His biggest mistake was not to replace Mike Mano (Legal Counsel) and Mike Mason (CFO). So they go on doing the same things and getting the same horrible results for shareholders. The Board is the core of the issue. It endorsed these people and they are also benefiting handsomely meanwhile, with a fat undeserved salary while shareholder value tanked from over $20 to under $1. 

People who trusted the company and bought the stock in the 20's are holding the bag at $1 and change because of the mismanagement of the company.

All the above are in my opinion. 


Open Letter to Richard Paulson - 13 Feb 2024


Dear Richard

Karyopharm has good science no doubt. And it has horrible management no doubt, at least at the financial, legal and CEO level. And if you would have listened to me a long time ago, and not been so arrogant and so weak, and changed the dysfunctional culture that you inherited including, by keeping some of the representatives of that dysfunctional culture which gave it continuity -- the company would have been in a much better shape.

Looking at what is, you have a negative cash of around 100 million. You're still spending like crazy in line with that organizational habit, the dysfunction, the spending cancer as I call it, and donating six figures and free lunches for you all, everyday, catered.

I wonder if you ever think that the value of your options could be much more than the value of those free lunches you so enjoy, and even bigger than the value of your big undeserved salaries. Undeserved because you have destroyed shareholder value and have been so utterly irresponsible, reckless, with your spending shareholder money by living a plush corporate life as though money will just drop from the trees.

That dysfunctional mindset was punished by investors whom you have consistently betrayed. You should know how those people who bought the stock at about $22 or about $15 or above $10 feel about you having betrayed them and them having been stupid to believe your stories.

So what you got going right now is a poorly selling drug because you so messed up the legal side regarding the disparagement and the political side because you guys are so clueless about that whole area, and your enemies, the huge short interest which is still there standing tall and strong did an amazing job of making sure your drug doesn't succeed. And they succeeded. Look at your weak sales.

The painful part is this is not the first time in the universe that this happens. Some of us long-term biotech investors have seen this happen before. And we warned you. Multiple of us warned you. But you were so complacent and comfortable in your fat salaries and free lunches that you just ignored it.

Selinexor is actually a great drug but very mismanaged, and I'm not blaming your sales organization, it's not their fault, it's your fault and your incompetent executives' fault.

A poorly selling drug, some cash, and a negative 100 million cash position, high interest rate picture, looming debt overhang which is especially scary given the profile of you and your CFO and your Legal Counsel who have consistently screwed up managing shareholder value.

On the other hand, you have some killer data ahead which normally one would think you would screw up just because of your incompetence based on your past horrible performance and mismanagement of other great data, as measured by shareholder value which is the ultimate criteria for measuring management performance. Any management student would understand that concept.

So this is the big picture. Poorly selling drug, a spending cancer syndrome, fat and happy and overpaid management, perhaps short-sighted management to ignore the possibility for their stock options, unless they're totally deceptive and lie to the public about their projections while deep inside they know their stock options will be worthless, I hope that's not the case because that would make you big time crooks.

And hot data coming up. And a huge short interest which has held its ground. But has proven to be vulnerable to any sudden movement in the stock. You can be sure some of the recent rally was due to short covering but they may have gone short again who knows. And you also have a potential for a buyout; Dr. Kauffman said you had overtures in the past. The horrible CEO and Board turned it down saying "not yet" (as per Dr. Kauffman), and that's when the stock was I don't know 20 times higher in price than now.

So what do you do? This is a good case perhaps for a Harvard Business School case that are taught in business schools worldwide

What should prudent Management do?

The first and foremost thing in my view is to change the culture which has gotten you into this hole. This is critical because if you don't, then the same dysfunctional culture is going to mess up future sales potential.

Mike Mano and Mike Mason in my opinion are not at a caliber to handle this. Sadly I told you this when the stock price was 10 times higher, and you arrogantly ignored it, or you were so weak to not be able to stand up to the lousy board and the strong rotten status quo.

I don't think you want to leave so we're stuck with you. But you can uproot the cancer in the culture by cutting the spending meaningfully, and not superficially, and not two years too late, and for this you need a new CFO. And you also need a new CFO who understands that as the company is bleeding cash it's absolutely imprudent, irresponsible, to make six figure donations and spend like crazy and feed yourselves daily catered lunches paid by shareholders. Remember, you're still losing money. It's not just a CFO's fault but it's your fault because the buck stops at the top and this disaster has been your doing Richard Paulson.

But as the Persians say whenever you catch the fish it's fresh. It seems very odd that I would be telling you this after I told you this when the stock was 10 times higher and you ignored it and look at what happened. I hate to tell company management I told you so. This is also the case in my professional career with companies that I consult with: a couple of times when they didn't listen, they came back a couple of years later and said oh you were right.

So you have to tame this spending beast, and this management poor competence issue. You should cut another I don't know 25% of the staff, and replace some key executives.

These actions dovetail with the confidence you give to investors. That you're spending cancer is cured. That you care for shareholder value and you're not giving them the middle finger which you have for years as you destroyed their wealth. These things can lead to higher company value.

But as long as you're the same gang you can't shoot straight doing the same things you will continue to mess up. screw up the best of data, just as you have in the past.

You seem very weak Richard, and a weak CEO likes weak executives who are worse than himself. History books of biotech will not be kind to you unless you change some things as hinted above. If you don't, even the best of data will not be made into success because of management incompetence.


Also see a new company I'm following that's going after Alzheimer's Disease. If CT-1812 works sky is the limit. A great CEO and great science. https://www.rezamusic.com/health/cognition-therapeutics-cgtx