Close

Roth Boosts PT on Cytokinetics (CYTK) to $18; Validation of Partnering Ability is Encouraging

December 31, 2014 7:48 AM EST
Get Alerts CYTK Hot Sheet
Price: $70.28 -1.58%

Rating Summary:
    18 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Roth Capital affirms Cytokinetics (Nasdaq: CYTK) at Buy and moved its price target from $13 up to $18 after the company recently provided important partnering validation on two fronts: with Amgen and with Astellas.

Analyst Joseph Pantginic commented, Important facets to our strengthened investment case include: 1) CYTK has shown its prowess in attracting significant partnerships in the form of both Amgen and Astellas, 2) each of these partners have approximately the same equity stake in CYTK as well, 3) a regulatory path forward for tirasemtiv for ALS is expected in the near term and, importantly, 4) the company has a strong financial footing with 2-3 years of cash on hand with the recently expanded Astellas collaboration (~$150 million pro forma cash). We believe this continued partnering validation remains not fully valued by the street, despite the recent stock run up. Recall that Amgen is running the global development program for omecamtiv mecarbil in heart failure with data from the COSMIC-HF study expected to read out in mid-2015. With the $55 million due from Astellas (details below) CYTK will likely use this cash flow for tirasemtiv in ALS based on our discussion with management. While the final trial design for a pivotal study has not yet been agreed upon with the FDA and EMEA, the trial design will likely contain and adaptive design as well as important interim analyses. This should allow CYTK to "titrate" their spending on the ALS study on an "as needed basis".

For an analyst ratings summary and ratings history on Cytokinetics click here. For more ratings news on Cytokinetics click here.

Cytokinetics closed at $6.90 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst PT Change

Related Entities

Roth Capital