Why Is Heart Failure Drug-Focused Cytokinetic Stock Trading Higher Today?

Cytokinetics Inc CYTK shares are trading higher after a report on potential takeover talks with Novartis AG NVS.

The Wall Street Journal noted that Novartis is nearing the final stages of acquiring Cytokinetics, a company focused on developing heart disease drugs. 

This move aligns with the trend of pharmaceutical companies acquiring rapidly growing biotechs to enhance their product pipelines. 

Also Read: Cytokinetics' Drug Potential: Analyst Suggests Key Role Of Established Pharma For Potential Launch.

The Swiss drug giant is close to sealing the deal with Cytokinetics, which is valued at around $9 billion. 

While the acquisition could be finalized this week, there's a possibility of other potential buyers entering the scene or the deal falling through entirely. 

Details regarding the price and specific terms of the potential acquisition remain undisclosed at this time.

In November, Bloomberg reported that Cytokinetics was reportedly exploring potential takeover options as it has garnered interest from at least one major pharmaceutical company in recent months.

In December, Cytokinetics released topline results from the SEQUOIA-HCM Phase 3 trial of aficamten in patients with symptomatic obstructive hypertrophic cardiomyopathy (HCM). The update led the stock soaring over 60%.

The results of SEQUOIA-HCM show that treatment with aficamten significantly improved exercise capacity compared to placebo.

Price Action: CYTK shares are up 13.18% at $106.08 on the last check Monday.

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