Analysts See Higher Success Chances For Cytokinetics' Heart Disease Candidate After Positive Phase 2 Data

Today, Cytokinetics Incorporated CYTK reported positive REDWOOD-HCM Phase 2 data showing CK-274 treatment for ten weeks resulted in substantial and statistically significant reductions in the average resting left ventricular outflow tract pressure gradient (LVOT-G) and the average post-Valsalva LVOT-G when compared to placebo.

Why It Matters: The new data is a needed win for the Company after Astellas Pharma Inc ALPMY and Amgen Inc AMGN have dropped partnerships with the Company this year.

Analyst Reaction: H.C. Wainwright analyst raised the price target to $53 from $41 and kept a Buy rating.

Analyst Joseph Pantginis is raising his projected chance of success for CK-274 to 65% from 50% and increasing his U.S. peak sales estimate. 

While meeting expectations around safety and efficacy, CK-274 also demonstrated a "differentiated and competitive clinical profile," Pantginis tells investors.

Needham also raised the price target to $48 from $33, with the Buy rating unchanged. 

Analyst Chad Messer notes that topline results from the Phase II study of CK-274 exceeded the necessary efficacy and titratability bars. 

The drug bested results from competitor mavacamten on both key measures of resting and Valsalva LVOT gradient. He points out that CK-274 could achieve these results more rapidly, with most patients reaching a steady titration in 6 weeks or less compared to 12 for mavacamten.

Mavacamten is the centerpiece of Bristol Myers Squibb & Co's BMY $13.1 billion buyout of MyoKardia, which is zeroing in on non-obstructive HCM and other indications.

Price Action: CYTK shares are up 44.1% at $27.70 during the market session on the last check Monday.