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Cytokinetics shares reaffirm buy rating on FDA decision, clinical trials

EditorNatashya Angelica
Published 03/12/2024, 15:00
CYTK
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On Tuesday, H.C. Wainwright reaffirmed a Buy rating and a $120.00 stock price target for Cytokinetics (NASDAQ:CYTK), a $6 billion market cap biotechnology company. The firm's target represents significant upside from the current price of $50.63, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

The firm's endorsement follows the recent announcement by Cytokinetics on December 2 that the U.S. Food and Drug Administration (FDA) has set a Prescription Drug User Fee Act (PDUFA) target action date for September 26, 2025. This date is slated for the review of Cytokinetics' new drug application (NDA) for aficamten, a potential treatment for obstructive hypertrophic cardiomyopathy (oHCM).

The FDA's decision to not convene an Advisory Committee (AdCom) meeting to discuss the NDA is significant. The NDA for aficamten is supported by results from the Phase 3 SEQUOIA-HCM clinical trial. According to InvestingPro data, analysts maintain a strong bullish consensus on CYTK, with price targets ranging from $60 to $120, reflecting confidence in the company's pipeline despite current negative earnings of -$5.38 per share.

The trial data indicated improved exercise capacity, better clinical outcomes, reduced cardiac biomarker levels, and alleviated symptom burden without the exacerbation of heart failure or the need to interrupt treatment due to low left ventricular ejection fraction.

Cytokinetics is currently preparing for the potential commercial launch of aficamten in 2025. This preparation includes initiatives like hypertrophic cardiomyopathy (HCM) awareness campaigns for healthcare providers, patient education, and support programs.

Moreover, the company is establishing distribution and sales force procedures and engaging in discussions with key opinion leaders (KOLs) and formulary decision-makers. In parallel, a Marketing Authorization Application (MAA) is expected to be submitted to the European Medicines Agency (EMA) in the fourth quarter of 2024.

The company is also conducting further clinical trials to explore aficamten's potential for label expansion. These include the completed Phase 3 MAPLE-HCM trial, comparing aficamten with metoprolol in oHCM patients, the Phase 3 ACACIA-HCM in non-obstructive HCM (nHCM), CEDAR-HCM in pediatric oHCM patients, and a Phase 1 trial in Japan.

While the company maintains a strong liquidity position with a current ratio of 9.28, InvestingPro subscribers can access 11 additional key insights about CYTK's financial health, including detailed analysis of its growth prospects and operational efficiency metrics. Get access to the comprehensive Pro Research Report, available for over 1,400 US stocks, for deeper insights into CYTK's investment potential.

With the SEQUOIA-HCM results in, the industry is now anticipating the Phase 3 MAPLE-HCM topline results expected in the first half of 2025. Aficamten has shown clinical benefits independent of the standard of care, while beta blockers like metoprolol have not shown improvements in functional outcomes such as exercise capacity.

In other recent news, Cytokinetics has made significant strides in its drug development programs. The U.S. Food and Drug Administration accepted the company's New Drug Application for aficamten, a treatment for obstructive hypertrophic cardiomyopathy, with a target action date of September 26, 2025.

The application is supported by data from the SEQUOIA-HCM Phase 3 clinical trial, which has shown significant improvements in exercise capacity and clinical outcomes for patients.

Cytokinetics has also entered into a significant agreement with Bayer (OTC:BAYRY) Consumer Care AG for the development and commercialization of aficamten in Japan. The deal includes an upfront payment of €50 million, with potential additional payments of up to €90 million based on certain clinical and commercial milestones.

Analyst firms Goldman Sachs and H.C. Wainwright have maintained their Neutral and Buy ratings respectively on Cytokinetics, citing recent developments and promising data on aficamten. In addition, Santo J. Costa has resigned from the Cytokinetics Board of Directors, reducing the board from nine to eight members. These are all recent developments as Cytokinetics continues to advance its pipeline of drug candidates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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