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Investing.com -- Shares of Cytokinetics (NASDAQ: NASDAQ:CYTK) climbed 11% after Edgewise Therapeutics reported results for its treatment of hypertrophic cardiomyopathy (HCM), which led to a 28% decline in Edgewise’s stock. The market movement reflects investor sentiment on the potential implications for Cytokinetics’ own HCM treatment, aficamten.
Morgan Stanley (NYSE:MS) analyst Maxwell Skor maintained an Overweight rating and a price target of $67.00 on Cytokinetics, citing the differentiation in safety profiles between Cytokinetics’ aficamten and Edgewise Therapeutics’ treatment. In his analysis, Skor noted that Edgewise’s EDG-7500 and Cytokinetics’ aficamten target the same condition but through different mechanisms. Skor highlighted that aficamten did not show a difference in atrial fibrillation incidence compared to placebo, based on an integrated safety analysis across multiple studies.
RBC analyst Leonid Timashev provided a mixed perspective on the readthrough from Edgewise’s data to Cytokinetics. While he acknowledged the strong efficacy data from Edgewise, he pointed out potential concerns regarding atrial fibrillation that could align the drug’s use profile more closely with cardiac myosin inhibitors (CMIs), potentially eroding a convenience advantage. However, Timashev continues to favor Cytokinetics, expecting the company to leverage a more convenient profile to drive significant sales and establish a strong market position ahead of Edgewise’s launch.
The direct quote from Morgan Stanley’s Skor reinforces the positive outlook: "Overall, we expect CTYK to be up 5%+ on aficamten’s differentiated safety profile."
Investors appear to be responding to these analyses, with Cytokinetics’ stock reacting positively to the comparative safety data and the potential for its HCM treatment to stand out in the market. The developments underscore the competitive nature of the biotechnology sector, where clinical trial results can significantly impact the market dynamics and the perceived value of treatments in development.
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