Cytokineti cs(CYTK) Notches New Milestone with Expanded Astellas Partnership - Roth Capital

Roth Capital affirms Cytokinetics, Inc. (Nasdaq: CYTK) with a Buy rating and $22 price target after the company and Astellas Pharma Inc. announced that Cytokinetics and Astellas have expanded their collaboration in skeletal muscle activators to include amyotrophic lateral sclerosis (ALS).

Analyst Joseph Pantginis commented today, Today's news represents an important milestone for CYTK at least on four fronts, 1) provides a significant partnering opportunity for tirasemtiv in ALS, 2) provides for partnered support of moving CK-107 (next-gen molecule) into ALS and 3) continues to provide significant non-dilutive funding and 4) speaks to the quality of existing pharma partnerships with expanding deals. Management indicated that screening in the Phase III VITALITY-ALS study with tirasemtiv will be complete very shortly with full enrollment soon thereafter. The open-label extension study is expected to begin in 4Q16. CYTK will be reporting 2Q16 quarterly results tomorrow. As we have been indicating, the key upcoming catalyst is Amgen's (AMGN-NC) decision to move omecamtiv mecarbil into Phase III for heart failure. With regulatory discussions complete and a protocol in place, Amgen is currently in the middle of making an important business decision. We believe Amgen will move forward with the Phase III as the drug's mechanism should be complementary to other heart failure standards of care, including Entresto.

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