Cytokinetics' (CYTK) Redwood-HCM Top-line Results 'Deliver on All Fronts' - Analyst

Earlier today, Cytokinetics, Inc (NASDAQ: CYTK) announced positive topline results from Cohorts 1 and 2 of Redwood-HCM - the Phase 2 clinical trial of CK-3773274 (CK-274), an investigational next-generation cardiac myosin inhibitor in development for the potential treatment of hypertrophic cardiomyopathy (HCM).

Throughout the trial, the CK-274 demonstrated high response rates, significant treatment effects and a favorable safety profile, reporting no serious adverse events attributable to CK-274 and no treatment interruptions occurring.

Reacting to the data readout, H.C. Wainwright & Co's analyst Joseph Pantginis believes the drug delivered “on all fronts as expected” and demonstrates a safe, effective, and differentiated competitive clinical profile. The analyst zooms in on 3 key factors:

• The number of responders is high, and all experience significant treatment effect
• Treatment effect is quick, dose dependent and quickly reversible projecting ease of use and safety
• Safety exceeds expectations and may suggest easier/ less monitoring compared to mavacamten

Throughout his report, the analyst compares CK-274 to mavacamten – a Bristol Myers Squibb’s drug candidate for treatment of symptomatic obstructive hypertrophic cardiomyopathy (oHCM), currently scheduled for an FDA decision on January 28th, 2022 – and notes that on most metrics the former performs in line or better than the latter.

He points that “CK-274’s is highly effective already at the lowest dose tested (5mg) and does not induce concerning safety signals even at the highest tested doses (20-30 mg)”, and believes the results confirm CK-274’s “validity and differentiation over mavacamten.”

H.C. Wainwright & Co maintains a “Buy” rating and increases Price Target to $53 from $41.

The view is shared by Dane Leone at Raymond James, who quotes: “the data support plausibility for CK-274 to have a favorable therapeutic index relative to mavacamten.” The analyst explains: “Adverse Events related to left ventricular ejection fraction (LVEF) appear to confirm Bull case for CK-274 relative to mavacamten”, as no dosage interruptions or discontinuations due to LVEF happened in either Cohort vs “around a 5% rate within the EXPLORER-HCM study with mavacamten post the dose titration stage.”

The Phase 3 trial, which will focus on the drug’s efficacy is set to start by end of year, 2021, and according to the H.C. Wainwright & Co’s analyst will “begin on solid and promising footing.”

Raymond James reiterates the “Outperform” rating on the shares and increases the Price Target to $54 from $37.

Shares are gaining nearly 40% following the announcement.

Written by Vlad Schepkov | [email protected]

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