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Stock Watch: Cytokinetics – From Certain Villain To Possible Hero

But Positive Phase III Study May Not Result In Big Pharma Acquisition

 
• By Andy Smith

Investors’ euphoria on Cytokinetics’ positive Phase III study may be tempered by its high debt, pass-through royalties, entrenched competition and the FTC in the terms of any transaction.

Stock Watch Image, Andy Smith
ANDY SMITH OFFERS A LIFE SCIENCE INVESTOR'S PERSPECTIVE ON BIOPHARMA BUSINESS

When Cytokinetics, Inc. announced the positive results of its Phase III SEQUOIA-HCM study of the cardiac myosin inhibitor aficamten in 282 patients with the rare disease obstructive hypertrophic cardiomyopathy (oHCM) in late December, its investors were quick to forgive Santa’s tardiness and pushed its stock price up by over 82%. By comparison, the NASDAQ Biotech Index (NBI) closed up by under 2% that day. Until the last few days of the year, 2023 had been a year to forget at Cytokinetics with its CEO describing it as “challenging year” after only the first quarter.

Cytokinetics’ stock spent the vast majority of 2023 underperforming the NBI by up to 30% when firstly its lead Phase III drug omecamtiv mecarbil for heart failure was dropped...

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