Astellas Walks Away From $450M Research & Discovery Partnership With Cytokinetics

Cytokinetics Inc CYTK revealed in an SEC filing that Astellas Pharma Inc ALPMY is walking away from a pact to research and develop skeletal sarcomere activators for diseases associated with muscle weakness.
Astellas had extended the research pact initially set to expire on December 31 last year, through March of this year.
But last week, Astellas gave written notice that it wants out of the pact altogether and gives up “all licenses and other rights” granted through the pact.
In 2013, Astellas had initially signed up to get exclusive rights to co-develop and sell skeletal sarcomere activators in all indications.
In turn, Cytokinetics had the right to co-promote and do some sales work in the U.S., Canada, and Europe.
Should these drugs have been taken forward solely by Astellas, Cytokinetics could have received over $450 million in pre-commercialization and commercialization milestones plus royalties.
No reason was given for the breakup, which will be official this November 1, nor updates on the programs. Cytokinetics is set to release its financials later this week.
It comes two years after Cytokinetics’ reldesemtiv missed the primary endpoint in phase 2 amyotrophic lateral sclerosis trial. The Astellas-partnered drug failed to beat placebo on a lung function test in May 2019.
It also comes a few months after Amgen Inc AMGN culled its pact with Cytokinetics for heart failure omecamtiv mecarbil after unimpressive Phase 3 data.
Price Action: CYTK shares are up 1.65% at $25.86, and ALPMY shares are up 0.98% at $15.14 during market trading hours on the last check Monday.

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