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

On Wednesday, Cytokinetics Incorporated CYTK released topline results from the SEQUOIA-HCM Phase 3 trial of aficamten in patients with symptomatic obstructive hypertrophic cardiomyopathy (HCM).

The results of SEQUOIA-HCM show that treatment with aficamten significantly improved exercise capacity compared to placebo, increasing peak oxygen uptake (pVO2) measured by cardiopulmonary exercise testing (CPET) by at least a square mean difference of 1.74 (1.04 - 2.44) mL/kg/min. 

Raymond James notes the management's commentary regarding a "handful" of down titrations due to site LVEF reads at a proportion consistent with the core lab results, and patients were well managed, a key differentiation from Bristol Myers Squibb & Co's BMY Camzyos (mavacamten), which suffers from the risk of drug accumulation and has seen LVEF drops necessitating dose interruption later during therapy (after the dose titration period). 

The analyst Sean McCutcheon increased the price target for CYTK from $63 to $92, which reflects a potential buyout price in the range of 4x EV/5-year forward (2029E) projected sales aficamten. The analyst reiterates the Outperform rating.

Raymond James notes that launching a cardiology drug, especially as the second entrant in the market following Camzyos' substantial lead (anticipating aficamten regulatory submission by 2H2024 with probable approval in mid-2025), would be most effectively managed by a larger pharmaceutical company equipped with established infrastructure. 

Cytokinetics currently possesses substantial evidence supporting the unique qualities of its drug, providing substantial grounds for discussions with strategic partners.

Price Action: CYTK shares are down 2.12% at $81.68 at last check Thursday.

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