Roth Capital Updates on Investment Thesis Behind Cytokinetics (CYTK)

Roth Capital offers more color on its investment case for Cytokinetics (Nasdaq: CYTK). The firm reiterated its Buy rating and $18 price target.

Analyst Joseph Pantginis commented, As we highlighted last week, this expanded collaboration with Astellas represents important and continued validation for Cytokinetics on the partnering front as well as provides a strong cash runway to the company. A key takeaway for us from the conference call is the long term pipeline fill potential from the collaboration as well as the nearer term opportunity with the planned initiation of a Phase II in spinal muscle atrophy (SMA) later in 2015. The planned Phase II is planned to target adolescents and adults with SMA with the goal of increasing muscle function and decreasing muscle fatigue. ~45,000 patients in the U.S. are afflicted with the disorder.

The company is not yet disclosing its trial design for the Phase II, however, it is important to point out the high level of unmet medical need for SMA as there are currently no approved treatments. We believe that should the data from the Phase II be positive, a potential accelerated regulatory path could be pursued. Two drugs are in Phase III; ISIS's (NC) nusinersen and Trophos' olesoxime (TRO19622). The company highlighted the potential for CK-107 to be complementary with these and other drugs based on the ability to augment effects on muscle weakness. We also look toward visibility out of the collaboration for non-neuromuscular development opportunities, which includes sarcopenia, claudication related symptoms and cachexia. The company is engaging KOLs to help determine the most efficient clinical path forward.

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

Cytokinetics closed at $7.37 yesterday.

You May Also Be Interested In

• Cytokinetics wins UK approval for heart drug aficamten
• C.H. Robinson Worldwide (CHRW) PT Raised to $225 at Stifel
• Coinbase (COIN) PT Lowered to $230 at Benchmark