Cytokinetics: Omecamtiv Mecarbil Rejected - Focus On Aficamtem? It's Not Quite That Simple

Summary

  • Cytokinetics is focused on developing drugs for cardiovascular and neuromuscular diseases.
  • Lead candidate Omecamtiv Mecarbil was rejected as a heart failure therapy by the FDA this week - robbing the company of a blockbuster commercial opportunity.
  • In its place, management will now divert efforts to Aficamtem - a drug indicated for Hypertrophic Cardiomyopathy.
  • This is nearly as large an opportunity - BMY paid $13bn to acquire Myokardia and its HCM drug Mavacamtem - that drug is now approved and expected to achieve >$4bn per annum peak sales.
  • Aficamtem has a similar mechanism of action to Mavacamtem - but the margins for approval are fine and another failure would be disastrous for Cytokinetics. There's possibly >100% upside, but also >50% downside in play when pivotal study results arrive in Q423.
  • Looking for higher risk/reward options trading ideas? I offer this and much more at my exclusive investing ideas service, Haggerston BioHealth. Learn More »

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Investment Overview:

Cytokinetics Share Price Steady Despite Much Anticipated Heart Failure Drug Rejection & $400m Loss In FY22

Cytokinetics (NASDAQ:CYTK) announced its Q422 and FY22 results this week - in a press release, the company revealed:

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BMY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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