Karyopharm (KPTI) Great Scientific Company Ruined By A Lousy Board, CEO, CFO, Legal Counsel, Who Have Been Incompetent In Driving Company Value
The horrible Karyopharm CEO Richard Paulson should be fired. He has made over $4mm in the last 3 years while the stock tanked 91%. Incompetent in driving value except for himself. The horrible CFO Mike Mason & horrible Legal Counsel Mike Mano made over $2mm each during the same period. Fire the gang that can’t shoot straight. Otherwise they will continue to ruin great science while getting richer. The useless Board will be held accountable.
Karyopharm has never been profitable so it was shareholder money (and not profits) that was used to pay useless CEO Richard Paulson, CFO Mike Mason, Legal Counsel Mike Mano, over FOUR (4) MILLION DOLLARS since Paulson became president IN 2021 while the stock tanked 91% during the same time and the useless Board endorsed this nightmare and is therefore responsible for the decimation of shareholder value. The same losers of shareholder money who pay themselves fat salaries and bonuses are still at it, and will continue to destroy others’ wealth unless they find the morality to act right, and fire the lousy executives who got the company in this hole.
RICHARD PAULSON'S GOT IT MADE: MAKING ABOUT $100,000 A MONTH WHILE ON HIS WATCH AS CEO KPTI STOCK HAS DROPPED 91.5 % AND AT THE SAME TIME HE MADE OVER 4 MILLION DOLLARS
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. Paulson has made over 4 million dollars in undeserved salary and undeserved bonuses, in my opinion.
DISCLAIMER: All the writings on this page are the author's opinions. If you find anything on this page to be factually false, please send me the correction via the contact page, with the evidence (reference). This page does NOT provide investment advice. Do your own research.
Paulson's Bank Account Growth
Anybody knows what Richard Paulson meant by babbling "next stage of growth", "good optionality", blah blah? Company value has been tanking since he took office by 91%. I guess he's talking next stage of growth of his bank account? He's made over 4 million dollars since he too office. I guess Optionality just means "I'm going to try to bullshit my way through the rest of this investor call I don't want to be on because investors are just nuisance except for their money which I like (spending, and the salary and bonus they pay me)".
Lousy CEO Richard Paulson Has Raked In Over Four Million Dollars Since He Was Hired In May 2021 While Stock Price Has Tanked 91.5% On His Watch And He's Still Feeding Investors BS Promises To Cover Up For His Incompetence In Driving Company Value
Lousy executives in my opinion:
- CEO Richard Paulson has made about $4.15 million since May 2021. The stock has lost 91.5% since then !! Paulson still makes about $100,000 a month.
- CFO Mike Mason has made about $2.4 million since 2021. Mason makes about $58,000 a month.
- Legal Counsel Mike Mano has made about the same as Mason. He seems to make about $55,000 a month. He managed to dodge the public reporting for 2023.
They're lousy in my opinion because they have been most ineffective and have shown to be totally incompetent in driving company value. The stock price doesn't lie.
8 August 2024 - Richard Paulson (CEO), Mike Mason ( CFO) have gotten used to BS'ing the investors. That's one factor in their incompetent destruction of company value. They both need to be fired.
Richard Paulson (CEO) and Mike Mason (CFO)'s Scheisse talk. More reason they both need to be fired. "our next stage of growth" -- you haven't grown at all except your own bank accounts. Management 101 lesson for lousy CEO, Richard Paulson: Company growth is measured by increase in company value. You have destroyed company value, and caused the company to lose hundreds of millions of dollars in value, due to your mismanagement. So stop your rhetoric of growth unless you're referring to your own bank account funded by shareholder money, paying you an undeserved salary and bonus for destroying shareholder wealth. Shame on you for calling that "growth".
"we will be opportunistic: means scheisse.
"we will recognize the value" means scheisse.
"good optionality" means scheisse.
"disciplined cost management" ???? how dare you say that. You were late at least 1 year in layoffs.
Mike Mason's usual blah blah... cash runway till beginning of 2026 "EXCLUDING" the 50 million we have to come up with by October 2025. Minor detail !! Another sign of a lousy CFO who is used to dishing out BS to investors he apparently hates because he's ultimately accountable to investors and being so incompetent in driving shareholder value, he doesn't like accountability.
Paulson jumps in and changes the topic because they've gotten used to BS'ing investors as they burn through hundreds of millions in cash and deliver no results that positively impact growth in company value. These in my opinion, useless, self-centered guys who have ruined company value, are used to just brushing aside important details. How can you just ignore 50 million dollars due in 2025 and say you have enough money till 2026 excluding that... minor detail !!
I believe these lousy executives have no intention to sell the company even with the best of data because they'll be the first ones who will get fired by the Pharma, because successful Pharma executives see right through these guys' track record of destroying company value at Karyopharm.
I believe Richard Paulson's priority is to extend the undeserved monthly $100,000 or so he makes, despite that kind of scheisse track record of destroying company value.
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I have lost enough money in this company that I am perfectly positioned to participate in bringing justice to this disgraceful governance that has consistently destroyed shareholder value while giving itself fat, undeserved salaries and bonuses. Several other investors I know are interested and together we can bring you down. Never underestimate us. We brought down two former horrible CEOs of biotechs before suing every Board member, and their exculpating clauses wasn't going to help them.
You can't pay yourselves big remuneration with shareholder money while destroying shareholder wealth, whatever your excuse may be, and you always have excuses like ineffective Boards and management do.
7 August 2024 - Self-Centered, Shareholder Value Destroying CEO, CFO, Legal Counsel. Analysts Frustrated About Continuous Delays. Are Delays a Way for the Lousy CEO and Board to Give Their Undeserved Salaries/Bonuses Continuity?
5 times delay! One analyst wrote he's about to give up. They know the science is great. But the Self-Centered CEO Richard Paulson, CFO Mike Mason, Legal Counsel Mike Mano are bound to destroy great science because they seem incompetent in driving company value. Paulson dishes out BS. "2B sales", "stringent cost cutting"... KPTI has spending cancer since Kauffman. Everyone else benefits at expense of shareholders. 6 figure donations; daily free catered lunches. Mason is the big issues. Paulson kept him b/c the sick culture benefits Paulson.
A hotshot CFO would take the bull by the horns. Mano is as bad. They wrongly think online defamation is not actionable, b/c they are so incompetent in driving company value. 20m short have them under their thumbs. Board is useless, self-centered. Deepa probably represents the shorts. She dumped ton of shares right before first Siendo results! Greene & Co. are a disgrace, and have destroyed value($25 to $0.80). Delays appear as strategy to sustain their self-profitable gig. All IMHO
Buy Rating Affirmed for Karyopharm Therapeutics Amid Strong Q2 Performance and Positive Xpovio Sales Outlook
Upcoming Events The Ineffective Management Will Burn A Ton of Cash At
Morgan Stanley 22nd Annual Global Healthcare Conference on Wednesday, September 4th
Baird Global Healthcare Conference September 10 - 11, 2024 InterContinental New York Barclay, 111 East 48th Street , New York, NY
ESMO 13 - 17 Sep 2024 Barcelona, Spain
IGCS October 16 - 18 for the IGCS 2024 Annual Global Meeting
Congress on Myeloproliferative Neoplasms (MPN Congress), scheduled for October 24-25, 2024 at the New York Marriott-Brooklyn Bridge in Brooklyn, New York.
3 August 2024
The medical aspect is beyond my pay grade. In principle competition is not a bad thing - it confirms the viability of the market. But I don't know what significant of pMMR is in Selnexor's case. But I couldn't disagree that more capable hands is a good thing. It's very simple. They've been total failures in capitalizing life saving unique great drug. Related idea for BP, GSK or others, crushing KPTI as a competitor is easy. They just have to hire some more prostitute doctor shills like in the case of MM, to bash Karyopharm. Mike Mason is a gift to shorts and Mano is as toothless as a legal counsel can get, in my view. The look constantly baffled at how the hell the stock got from $25 down to $85 cents, on their watch. Can't be anything they're doing, cause they ain't doing much as far as I can tell. Over $50,000 a month package for being baffled clueless "executives" who can only execute destruction of shareholder wealth. Just look at their track records.
https://x.com/duedoctor/status/1820831114061111394?s=46
Which planet is this CFO Mike Mason From?
Mike Mason -- Chief Financial Officer
"We realized the importance of extending that cash runway. We have three pivotal readouts. First one is myeloma, which is in the first half of 2025. Second one is myelofibrosis in the second half of 2025 and the third in endometrial in early 2026. So putting all those together, our cash runway gets us into the early 2026, excluding the convert that we have due in October 2025."
That convert costs them 50 million !!! And he just excluded it from the cash runway !!
But cash runway for these guys who are part of the "spending cancer" in my opinion, is irrelevant. I remember them saying ya we have a lot of money and long runway blah blah but turn around and dilute the daylight out of the stock.
~~~
Mike Mason (CFO) totally appears to me to be totally careless about the stock price, as long as he gets his about $65,000 a month in salary and bonus. Even if the stock goes to zero he doesn't give a damn and he'll even be happy because of all those shareholders who called out what a horrible CFO he is.
Great Science In Hands Of Inadequate Management
Is selinexor the magic drug in NSMP endometrial cancer ? #esgo2024 An engaging discussion by Dr Sehouli https://x.com/TeamEndo_MSK/status/1765769680453537821
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@BPothuri "we haven’t seen results like this [SEINDO1] in p53wt pMMR... really important we get that trial finished [Xport-EC-042] so we can have access to another therapy to help our patients in the frontline & maintenance setting".
~~~
Jonathan Wexler @WexCapital Jul 31 2024 -- Debby is still alive because of $KPTI @mlazaru - she's done a Car-T and a new Janssen drug in the last two years (Janssen drug still working). Any time she fails something she gets CR from Selinexor and tries something else. Michael Kauffman should win the Nobel Prize [but a grade F for building such a wasteful and shareholder unfriendly culture]. https://x.com/WexCapital/status/1818701202236096981
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"Strength of the data unparalleled... remarkable TSS50 & SVR35 + impressive durability"... CMO Reshma Rangwala
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Dr. Coleman & @FBackesMD @IGCSociety "...I think one of the kind of things that for me has been so transformative was to look at the PFS curves & the tail of those curves that don't drop so we love to see OS but to see a patient who never reccurs that's transformative"
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Emerging Era of Combination Therapy in Myelofibrosis Explored in SENTRY Study https://www.targetedonc.com/view/emerging-era-of-combination-therapy-in-myelofibrosis-explored-in-sentry-study
To: Board members who might have some morality left -- 1 August 2024
Rule #1: you can't have the same people do the same things and expect different results.
Deepa dumped a ton of shares in the 6's right before the Siendo bad data. Classy!
A lawyer I know who used to work with Mike Mano sold his shares in the 6's because of hid dislike of the management and not thinking highly of Mano.
I had a call with Mano. He's in another universe.
Mike Mason despises shareholders. He's a disaster in so many areas: presentations, the way he moves, dresses, conducts himself, his lack of interest in investor calls on video, jittery - doesn't want to be there. Regardless I believe he's a D- player. Mike Kauffman brought him and Mano -- both are Mikes like him -- and both are quite low caliber. Great CEOs bring people who are better than themselves. Kauffman and Paulson are the reverse. Paulson has been a big beneficiary of the status quo. Count how many millions he's pocketed in undeserved salary and bonuses and perks while he's destroyed shareholder value.
Garen and Barry and y'all are also beneficiaries of the status quo. You get paid for doing nothing - attend a few meetings - and just let the dysfunctional status quo, the spending cancer, the ineffective management just go on -- same story that got the stock from 25 to 90 cents.
But by doing so, you're breaching your fiduciary duties including oversight -- and you being immoral for breaching those duties, in my view. Legally you're covered. Delaware law makes it very hard to go after you. But at a minimum you should have morality. You should demand a change to this nightmare management that has got the stock from 25 down to 80 cents and there's still a 20 million short interest and their paid, shill doctors who are doing far better job of dissuading people against Selinexor than your sales and marketing teams.
And they're thirsty for the last drop of the company's blood, and know they can get it because of toothless people mentioned above who have pocketed millions in remuneration and done nothing for it that fulfills why they have that job : build company value. They've given 6 figure donations, free daily catered lunches, thrown tons of company parties, outings, events, like money grows on the walls, and they hate shareholders who hold them to account.
But YOU have a moral duty to stand up for what's right and replace these people, or give them an ultimatum : perform or out! But they can't perform because turtles can't fly.
In my opinion, Paulson hides behind that beard and laughs his way to the bank every 2 weeks, thanks to shareholders he's thrown under the bus, as the stock tanked from the teens to under $1 on his ineffective, self-centered, irresponsible watch, and your immoral disregard for you moral and fiduciary duties of oversight, and making sure the executive team does what it is paid to do: build company value, and not run a fun science lab and splurge like there's no tomorrow, which is exactly what they did for years, and finally sugar started hitting the fan and they did a superficial cost cutting at least 1 year too late.
All the above are my opinions. I'm calling to your morality, if you have any, to think solutions, next time you get your direct deposit from Karyopharm, funded by shareholders you've thrown under the bus.
Their habit is to shoot and try to discredit the messenger. But numbers don't lie. Teens to 90cents on Paulson's watch. 20's to 90 cents on Mano / Mason's watch.
Morality means your future well being depends on it. We are what we do. You act morally now, and do something for what you're getting paid for, instead of being some Yes Men/Women at a board meeting, letting status quo go, endorsing D-players, and enjoying the money you got for not only doing nothing - destroying company value. It's harsh but it's reality. Get a 5 year stock chart.
Regards
Reza Ganjavi, MBA
Since May 2021, Richard Paulson Has Racked In Over $4 million For Himself As Share Price Has Dropped 91%
Richard Paulson has been a CEO since May 03, 2021.
On 3 May 2021 KPTI stock closed at $9.44
Today, 8 August 2024, after 3 years of miserable, lousy, self-centered mismanagement of CEO Richard Paulson and the useless Board of Director who enabled him and his gang of CFO and Legal Counsel who can't shoot straight, the stock is 0.81 - that's EIGHTY ONE CENTS. DOWN FROM 9.44. That's a drop of 91%.
On Richard Paulson's watch the stock has dropped 91%.
Richard Paulson Has Racked In About $4,000,000 For Himself As Share Price Has Dropped 91%
2021
Paulson 2021 Base Salary: 670,000 + 435,500 = 1105500 (and he only "worked" since May)
Mike Mason: 455,000 + 182,000 bonus = 637000
In 2022
Paulson 696800+452290 = 1149090
Mason 472000 + 193048 = 665048
Mano 450000 + 184050 = 634050
https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&ref=317378380&type=PDF&symbol=KPTI&companyName=Karyopharm+Therapeutics+Inc.&formType=PRE+14A&dateFiled=2023-03-31
in 2023
Paulson 740000 + 456950 = 1196950
Mason 500320 + 191623 = 691943
Mano - not listed - he probably set it up so he's not on that list so we don't know how much he made but it seems to be more than 2022 and at least
Karyopharm's lousy, self-centered, failure CEO Richard Paulson made $3,451,540 between May 2021 and December 2023 !!
Karyopharm's lousy, selfish, failure CFO Mike Mason made $1,993,991 between May 2021 and December 2023 !!
Add 7 months of 2024 and we get
CEO Richard Paulson has made about $4.15 million since May 2021. The stock has lost 91.5% since then !! Paulson still makes about $100,000 a month.
CFO Mike Mason has made about $2.4 million since 2021. Mason makes about $58,000 a month.
Legal Counsel Mike Mano has made about the same as Mason. He seems to make about $55,000 a month. He managed to dodge the public reporting for 2023.
They're lousy as executives, in my opinion, because they have been most ineffective and have shown to be totally incompetent in driving company value. The stock price doesn't lie.
HERE'S THE FUN SCIENCE LAB (KARYOPHARM)'S GIVEAWAY PAGE. THEY FORGOT THEY'RE NOT ROCHE FOUNDATION OR SOME SIMILAR ENTITY WHICH IS ROLLING IN CASH.
https://www.karyopharm.com/responsibility/grants-giving/
Archived copy: https://archive.is/bdZ67
WORST CEO, CFO, LEGAL COUNSEL IN BIOTECH
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 CEO. On his watch the company's shareholder value tanked. On CEO Richard Paulson's watch the shareholder value tanked even more (over 90%), 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 in driving company value, just as before. The gang that can't shoot straight. In my opinion.
7 Questions for Karopharm Executive Management
Dear Elhan
I know the management doesn't like to be held accountable to shareholders and has historically viewed shareholders who like the management to do what they're trusted to do (build company value), as nuisance, but you're a fine woman and hopefully can answer these questions. I like Sohanya Reshma and yourself -- and was hoping you can bring some sense to this otherwise nonsensical picture where executives have just destroyed shareholder value for the millions in pay they receive -- just look at the market cap and stock price since Richard took over as CEO.
I picked up a few shares recently because of the upcoming readouts, which you turned around and delayed - for the 5th time !! And there's always an excuse, and they're usually because of not being proactive enough, and despite paying Richard about $100,000 a month (in salary and bonus), the driving of company value has been extremely incompetent, and non-existent. Instead of executives driving company value, shareholders are paying hefty incomes for the executives who have been destroying company value. Sounds harsh but it's a fact. Numbers don't lie. Look at your market cap.
1) I see a 488k revenue from Antengene. Could you remind me which countries Antengene is selling Seli in. And why is the revenue so low? One reason I can think of is the professional counterfeit operation in China I sent you notice of, which was probably ignored like so many other things. The Chinese market must be flooded with deeply discounted Seli.
2) You totally neglected the converts while quoting cash runway. How do you justify that?
3) Richard keeps talking about next stage of growth. What growth is he referring to (other than his bank account that has grown by 4 million dollars since he became a CEO in 2021) ? The most important growth measure is company value, which has shrunk close to 90% since Richard took office.
4) Richard keeps talking about 2 billion in sales. None of the analysts have projected anything even close to that. How do you substantiate that 2 billion projection?
5) Short interest is still at 20 million. It seems the shorts have no plans in covering given their strong faith in the executives to continue driving company value down. The company has historically ignored this topic, and ignored the professional, orchestrated disparagement of its products, and is on record for saying online defamation is not actionable. We've seen the consequence of your Legal department's ultra passive, timid stance that shorts recognize, coupled with the financial lack of discipline (chronic spending culture). Has anything changed in that regards? Is the company ever going to stand up for itself or continue being a soft punching bag for the shorts who have seriously hurt your sales by negative advertising.
6) Richard touts disciplined cost controls. Numbers say something else. Numbers say a very small, ineffective, superficial cost cutting. What are some of the cost cutting steps you've taken?
7) Richard keeps repeating "good optionality" ... what does that actually mean? To me it sounds just like jargon, lip service, filler phrase like "we will be opportunistic", which say absolutely nothing but continuation of a status quo that has seen Richard's wealth soar by over 4 million in salary and bonuses since 3 May 2021 (and about 2 million each for Mike Mano and Mike Mason) while the stock has tanked 91.5% since Richard took over, and shorts have the company squarely under their thumb (20 million shares).
I would appreciate a prompt answer.
Thanks and Regards
Reza
Letter to the Board
[Some of the text of the letter plus other sections that are elsewhere on this web page.]
Barry Greene: I request that you please send a copy of this email to all Board members. I've copied it to: Mr. Schor, Mr. Zu, Mr. Bohlin, Ms. Pakianathan, and Mr. Paulson who has been a total failure and incompetent in driving value except for himself (and you all for yourselves): he raked in (you paid him) over $4 million in earnings while stock has dropped 91.5% on his watch, and his ineffective mismanagement will screw every other good data in the future, so the sooner you fire him the better.
CFO Mason and Legal Counsel Mano who raked in over 2 million each during the same period as the Board and this gang that can't shoot straight decimated company value by 91% (and closer to 100% if you go back another year.
This disaster cannot go on without each and every Board member not being held liable in a litigation for breach of your duties, a class action to get every undeserved penny you all were paid by shareholder funds returned to shareholders, or a Derivative lawsuit.
It's long overdue. The Board should fire this useless CEO, abide by its fiduciary duties and stop this mutual backscratching that just enriches the insiders at the cost of shareholders. Even the analysts are fed up. Their clients bought their story based on good science, and could never imagine such incompetence in screwing up company value by this gang who can't shoot straight (with exceptions, e.g. Sohanya, Reshma).
IN MY VIEW, RICHARD PAULSON IS ALL ABOUT LIP SERVICE AND SUSTAINING HIS OWN PROFITABLE MILLION DOLLAR GIG FOR HIMSELF
Paulson bragging about cost cutting is just lip service. The company has spending cancer at its very core. The only way to "treat" is is to get rid of this horrible gang who has destroyed company value, and is still at it with its clueless, careless, easy life, and no sense of urgency, no sense of responsibility because it has always hated shareholders, and viewed them as just annoyance and ATM machines to feed the spending cancer. This company is rotten to its core in terms of incompetent destruction of company value. The stock price doesn't lie. And YOU, the Board members are responsible for this horrific destruction of company value.
Everyone sees through Paulson's rants e.g., about 2 billion in revenue, "next stage of growth", "being opportunistic", "good optionality", BLAH BLAH -- after 3+ years of Paulson's nightmare mismanagement, investors see right through his B.S., and analysts know even if you had the greatest product in history, this useless gang that can't shoot straight would screw it up.
Shorts are jumping in joy meanwhile, counting on your gang that can't shoot straight, and are thrilled in knowing that Paulson, Mason, Mano will surely screwup everything in the future just as they've done in the past (measured by company value), and these same losers who got 4+ million for themselves since Paulson's gig, paid to them by the lousy, ineffective Board -- are bound to see the stock keep going down to a point where the company will finally get taken over by a hedge fund or a pharma for pennies on the dollar, BECAUSE OF THESE LOSERS in key posts. They will keep losing shareholder value because they are INCOMPETENT in driving company value.
How difficult is it for the useless Board to grasp these concepts? How many more millions should these losers be paid with the HOPE of them finally caring about company value or even worse, for them to become CAPABLE? Turtles can't fly. Paulson+Mason+Mano are bound to destroy Karyopharm shareholder value completely, in my view, based on their pathetic past performance.
ANOTHER DELAY BY THE USELESS GANG
IT STINKS WITH APPEARANCE OF: "WHO CARES, WE JUST GET MORE MONEY FOR OURSELVES THE LONGER THIS TAKES -- GREAT DATE = BUYOUT AND END OF OUR PROFITABLE GIG. I AM NOT CONFIDENT THIS IS NOT WHAT GOES THROUGH YOUR USELESS CEO, CFO, BOARD MEMBERS' MINDS.
Did Paulson do everything a great, competent, proactive and CEO could do, avoid five times delays??? I'm willing to bet the answer is no just knowing how incompetent is gang is in driving company value.
ONE OF MANY SIGNS OF KARYOPHARM'S CHRONIC SPENDING CANCER
Administrative Assistant – Job ID 2023-2182 - "Order, set up and clean daily catered lunches for all employees".
The very fact that this and many many other such facts exist, is evidence of deep rooted rotten spending cancer at Karyopharm, and a sick, cancerous attitude towards spending shareholder money. It seems that SHAREHOLDER VALUE IS NOT TAKEN SERIOUSLY BY THIS LOSER CEO, CFO...
CEO, CFO, LEGAL COUNSEL HAS BEEN PAID OVER 4 MILLION DOLLARS SINCE 2021 WHILE STOCK TANKED 91%
Richard Paulson has made over $4 million since 3 May 2021, and the stock, on his watch has dived 91.5%. It's long overdue to put the company in the hands of a capable CEO. Richard has been a horrible, ineffective CEO who has raked in 4 million for himself and has proven to be utmost incompetent in driving company value, and has sustained the spending cancer (don't listen to his nonsense about disciplined cost controls -- the issue is the culture: wastefulness is built into it.
Mike Mason has made over 2.4 million dollars in the same period and the stock on his watch has tanked even more. He was involved in a secondary in the 20's. Now the stock is struggling to hold 80 cents because investors know how incompetent you all are in driving company value.
Shareholders losing their shorts, shorts prospering, the Board members getting paid for doing nothing that has any positive impact on company value, and some executives laughing their way to the bank with millions money. There's something very wrong about this. Richard Paulson will never admit it.
His nonsense line is future data will save us. But you will just as much screw up future good data as you have done already.
Mike Mano has made about the same as Mason since Paulson came on board. Shorts must love the toothless company. They've made a killing disparaging the lifesaving drug that you guys are too weak to capitalize on, and too myopic, since you don't understand the politics of power. They derailed Selinexor for MM for years, and they'll do the same for EC, MF because of your incompetence in driving company value.
It all boils down to leadership where the Board, CEO, CFO, LC have been a failure at in my opinion, and Wall Street seems to agree.
The few analysts who are following you are ashamed of their clients who bought their story when the stock was in the teens. They're hoping you'll change but you won't.
Paulson Mason Mano Greene Schor Bohlin et all will get richer and shareholders will get poorer because you all have your priorities wrong. The Board has failed in oversight and accountability. The very performance matrix is a joke, and you know that.
You all have apparently forgotten that your job, the reason you are there, is to drive company value and you have been a total failure in it.
And the same failed people doing the same ineffective things will lead to more failures. Therefore there is an urgency to fire Paulson and Mason and for Greene to step down, and get a CEO and CFO to take this bull by the horn. They'll fire the other ineffective people who are getting richer and richers as shareholders get poorer and poorer.
~~~
Remember, competence for public company officers is measured in company value. You have destroyed company value by your incompetence in driving value, and you will be held liable, legally, and if Delaware laws back you up, morally. It's not good karma to fail your fiduciary duties, enable and endorse a self-serving gang who can't shoot straight, and destroy hundreds of millions in shareholder value, and always have a lame excuse, and that is when you have a life saving, cancer curing medicine in your bag.
There's nothing wrong with the product. What's wrong is you Mr. Greene, and your self-serving incompetent Karyopharm Board, CEO, CFO, Legal Counsel and a cancerous, dysfunctional corporate culture that just does one thing consistently: NOT deliver results; DESTROY company value; and fail to see beyond the end of its nose (and thus always have an excuse to cover up for its failures which arise out of its incompetent, while blaming external sources: patients, doctors, market, investors, people like me who call a spade a spade and see through Mr. Paulson's cloak. Your gig only benefits you, but it doesn't work like that Mr. Greene.
~~
ANALYSTS TOO ARE FED UP
To Karyopharm's Board
Piper Sandler: "Recall, success for selinexor in endometrial cancer (EC) has been a key part of our thesis on this name, so with yet another delay to timelines (the 5th by our count), our patience is being tested."
5 times delay!
Piper is about to give up. Others find it shameful to cover a 80 cent stock and under a 100m market cap company but the only reason they do it is because of the great science in the hands of such ineffective, selfish management who thinks they can destroy people's wealth year after year and get away with it. The analysts know the science is great. But the self-serving Board, and CEO Richard Paulson, CFO Mike Mason, Legal Counsel Mike Mano are bound to destroy great science by their incompetence in driving company value.
Paulson dishes out BS. "2 billion sales", "disciplined cost cutting", "good optionality" blah blah ... KPTI has spending cancer which is a culture Dr. Kauffman built. Everyone else benefits at expense of shareholders. 6 figure donations; daily free catered lunches, events and parties and outings and give aways, even when the company is losing 10's of millions a month. Karyopharm acts like it's Roche Foundation -- but forgets that Roche makes millions and Karyopharm LOSES millions, and there's absolutely no sign on the horizon -- nobody is optimistic -- that even with more great science, some day, it will translate to company value, because of the ineffective Board and management. You have a profitable gig going for yourselves. That's how it appears to me. And even a buyout or any change to this gig is a threat to your personal gain.
Mike Mason is the big issue when it comes to the spending cancer. Richard Paulson kept him because the sick culture benefits Paulson. A hotshot CFO would take the bull by the horns.
The stringent cost cutting you brag about is nothing, meaningless. You still have NO IDEA what cost cutting means. And if you did you wouldn't be at least ONE YEAR late in doing the layoffs because as management you are ineffective. Terrible management is reactive instead of being proactive and creative. You suck at your sole goal you were hired: build company value.
Mike Mano is just as bad. They wrongly think online defamation is not actionable -- because they are so incompetent. 20 million short position have them under their thumbs. There's hedge fund shorts with loud doctors on their payroll who have managed and are still active in hurting your sales because they know they can because with someone like Mano, Mason, Paulson, Greene, Bohlin, etc. this company has no teeth, and can get kicked around easily, and is a guaranteed to the shorts, because the Board and management have their priorities mixed up. They're in it for themselves. Their benefit in this is their top priority. If that were not the case, they'd hire top level executives who would perform -- people like Sohanya and Reshma.
The Board is useless, self-serving and has breached its fiduciary duties and will be held accountable. Deepa probably represents the shorts. She dumped a ton of shares right before first Siendo results, and continued dumping which tells me she knows how incompetent this management are and how they're bound to screw up whatever great science they have in hand.
Competence matters, and this gang, including the Board, Barry Greene, Garen Bohlin, etc. doesn't have it. They've been utmost incompetent in driving company value. It takes real incompetent leadership to take a $25 stock down to $0.80 (barely holding). Hundreds of millions of value has been destroyed by this Gang Who Can't Shoot Straight and this useless, pathetic, self-serving Board of Directors still thinks the same incompetent persons can continue doing the same things and get different results. F
Face the music: There is a solid reason 20 million shorted shares haven't covered. They know Paulson Mason Mano Greene Bohlin Schor et al, will screw up whatever great science put in their hands, and they always have.
Truth is bitter but there's still a chance to save this sinking ship. The Gang who can't shoot straight is in a la la land. They have to come up with 50 million dollars next year to service the debit. They continue to spend money like crazy and have the nerve to talk about stringent cost savings. They spending cancer is so deep rooted within the sick culture that they don't understand the alternative. They have no clue running a tight ship means. Look at their pathetic website and their donation page.
Giving 6 figure donations while burning through 10's of millions of shareholder money a month is a natural for them because shareholders don't count. Mason probably hates shareholders.
This gang is not accountable. Being so incompetent they don't grasp the dangers of an 80 cent stock. And they're so incompetent, if they do a reverse split they probably will screw it up too.
The ONLY salvation for Karyopharm is to fire Richard Paulson -- end his self-serving gig that has been very profitable for him personally and a disaster for people he was put in that job to serve: shareholders. If you don't grasp that take an MBA course.
A new CEO has to fire this lousy CFO and Legal Counsel and other useless fat in the company and get a CFO to pull this disaster by the horns.
Otherwise, you're bound to screw up even positive future trial results and that's what 20 million short position is counting on. Just ask Deepa her reasons for dumping her shares. It's not the science. It's lousy management.
Part of the paradigm of the spending cancer and lousy management is to think you're entitled, that you can go on like this forever, and the mistake that effort is results. The people who trusted Kauffman and Mason's BS and paid over $20 a share must hate the company now. Karyopharm is a painful, infected tooth in the biotech sector: a GREAT SCIENCE with INCOMPETENT MANAGEMENT who have destroyed shareholder wealth.
One analyst commented that the 5 times delay is unacceptable. You always have an excuse. But your excuses also show how incompetent you are. How myopic you are. You don't care about delays just as you allow yourselves to feed yourselves with daily catered lunches - every day - paid by shareholders. What other job can get Paulson a million+ a year for doing zilch to drive company value. Nobody is going to hire these losers, so they don't want to have good data soon because deep inside they know they're going to screw it up too because they just don't have the competence to drive company value - it's never been on their priority list and even so they were too incompetent to achieve it.
There was a reason why Kauffman hired these guys: they were even weaker than him and he was a lousy CEO - a great scientist and doctor. And lousy CEOs hire weak people. Great CEOs hire people better than themselves. The only company Kauffman ran as CEO prior to Karyopharm went bankrupt.
So these inexcusable delays appear as strategy for you self-serving Board members and executives to sustain your self-serving gigs. But don't forget your fiduciary duties. And don't forget karma. You can't get away with destroying hundreds of millions of shareholder value and laugh it off on the way to the bank.
The Board should take this matter very seriously and think morality. Did you do what was prudent for the last pay check you received for doing nothing at Karyopharm? Barry Greene, Garen Bohlin and other long-term board members: can you sleep at night, knowing that on your watch, you have destroyed hundreds of millions of shareholder value and you have failed to perform your duties to hold this lousy gang who can't shoot straight (including yourselves) accountable? Do you understand that competence matters? How much more value does Paulson's horrible lousy gang have to destroy before you say ENOUGH IS ENOUGH and fire Paulson and bring a CEO who can STOP this fun science lab's sick wasteful incompetent culture?
I am copying Reshma and Sohanya whom I mentioned and am fond of them. I am copying Dr. Kauffman because I think he's responsible for this mess -- it was the horribly wasteful culture he built and the wrong people who hired that got the company into this mess. He probably dumped his shares above $6 like Deepa. Maybe he has a say in this still. Maybe he learned in due time that there are some CEOs who are no-nonsense and can perform, and Paulson is not one of them.
Maybe Sharon has a say in this and can get Greene, Bohlin etc., to recuse themselves because of their miserable performance.
Maybe Deepa should spare the company from her "advice" which is worthless -- she seems to like the pay check too much -- for doing nothing that matters to company value. Maybe there are a couple of Board members who are not mediocre, who see this problem and can pound on the table and say IT'S ENOUGH. When analysts threaten to throw in the towel, you know that many investors already did.
Don't fool yourselves. The issue is not patients, recruitment. The science is great. It's your incompetence and self-serving attitude combined that allows you to tolerate such destruction of company value. Anything you do to try to help it will arise from the same incompetence. They only solution is for Barry to resign and for the Board to fire Paulson and Mason and Mano. How much more value do you want to destroy before you get it. Down side of 80 cents is not much, and poses a new challenge, caused by your own incompetence, which you can be sure Mason, Paulson, Mano will blow that too.
All the above are in my opinion. My aim is to wake up this self-serving, lousy Board which has destroyed so much wealth that COMPETENCE MATTERS, and YOU WILL BE HELD LIABLE.
You know who I am but the incompetent gang who can't shoot straight likes to block criticism, and likes to be left alone in its self-profiting gig. Think of how many shares at 80 cents you have to issue to fund the 2 plus million dollars you have to pay in combination to Paulson, Mano, Mason as compensation for destroying more shareholder wealth.
PS -- Hey Richard, if you want to do serious cost cutting, take a salary cut. Great companys' great CEO do that. But you will never! Better yet, quit, and take Mano and Mason with you.
Self-centered incompetent failure of driving company value is a repeated theme
I know investors who are concerned and disgusted by this management's past incompetent action which has always been contrary to shareholder interest, as evidenced by the constant drop of company value.
Now with stock this low, it's conceivable that the same incompetent gang who can't shoot straight will do a reverse split without having improved fundamentals, still spending like crazy, and that will lead to what happens in majority of RSS cases: stock drops hugely back to pre RSS levels. That's the consequence of the dire terrible mismanagement of the company by you and your colleagues.
Of course a strong CFO/CEO would approach the matter strategically and wisely and seek the right advice, from credible sources not agents of shorts!!! You can bet short interest will double with a short squeeze.
But the problem is Paulson and Mason don't seem to care. They're taking home 60k to 100k a month regardless of what happens. If they were hotshot that'd be ok but they're not. They're lousy as executives as judged by how miserably they've failed in driving company value -- meanwhile making a ton of money themselves -- and stock always down -- paralyzed under the thumb of the short, thanks to Paulson, Mason, Mano's mismanagement, in my opinion.
xxx
3 KARYO STOOGES
Great science and important upcoming data readouts but cancerous corporate culture started by Michael Kauffman and inherited by Richard Paulson via Mike Mason and Mike Mano (whom together comprise the gang who can't shoot straight, in my view, or the Three Karyo Stooges). The cancerous, false attitude that cash is there to burn, first and foremost for themselves (e.g. daily free catered lunch for everyone paid by shareholders) and 6 figure donations, and all kinds of giving giving, like it's their grandpa's treasure chest. That's how they took the stock from 20+ down to under $1. Paulson came a bit later but Mike Mason was there when they did a secondary in the 20's. Those bagholders who trusted these stooges lost their shirt. The Board is ultimately at fault for failing its duty of oversight, but they too are beneficiaries of this disaster. With 3 Phase 3 readouts, I hope the Board will shake up this disaster and bring in new blood. https://www.karyopharm.com/responsibility/grants-giving/
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 in driving shareholder value (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-centered 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 centered, ineffective management 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 some lousy members of the Board and some members of the executive management team in driving company value. 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
Management incompetent in driving company value 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
Someone 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 in driving company value, 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 in driving company value 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 ineffective 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 in driving company value 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 in driving company value.
Regards
RG