Cytokinetics, Incorporated (NASDAQ: CYTK) today announced that it has agreed to a series of transactions with certain companies wholly owned by investment funds managed by RTW Investments, LP, and Ji Xing Pharmaceuticals Limited (“Ji Xing”), related to CK-3773274 (“CK-274”), a next-generation cardiac myosin inhibitor that Cytokinetics is developing for the potential treatment of hypertrophic cardiomyopathies (HCM’s) and other clinical indications that may be associated with excessive cardiac muscle contractility. Pursuant to these transactions, Cytokinetics will receive a combination of committed capital, funding and sale proceeds of up to $250 million from RTW and is eligible to receive up to $200 million in milestone payments plus royalties on future sales of CK-274 in certain Asian countries.

“These deals afford us the opportunity to dial up development of CK-274 in multiple indications and across a wider span of geographies,” said Robert I. Blum, Cytokinetics’ President and Chief Executive Officer. “We have built our company by leveraging innovative science and deals and are pleased to enter into another set of transactions to diversify access to capital and extend and expand our cardiovascular pipeline.”

“As a differentiated, next-generation cardiac myosin inhibitor, CK-274 holds promise as an innovative treatment for hypercontractility that underlies hypertrophic cardiomyopathies and other indications,” said Roderick T. Wong, MD, Managing Partner, RTW Investments, LP. “We are pleased to partner with Cytokinetics in China as well as to invest in upside that CK-274 may provide globally.”

Amongst these deals is a license from Cytokinetics to Ji Xing, a biopharmaceutical company backed by RTW and focused on the development and commercialization of innovative medicines in the People’s Republic of China (including the Hong Kong SAR and Macau SAR) and Taiwan. Cytokinetics has granted to Ji Xing an exclusive license to develop and commercialize CK-274 in China and Taiwan, in accordance with Cytokinetics’ planned global registration programs. Cytokinetics will receive an upfront payment and is eligible to receive up to $200 million in development and commercial milestone payments and royalties on future sales of CK-274 in certain Asian countries.

Under a separate funding agreement, Cytokinetics receives options for additional funding from RTW for the further development of CK-274 in HCMs. Upon initiation of a global registration program for CK-274 in each of obstructive HCM and non-obstructive HCM, Cytokinetics is eligible for funding, at its option, in the amount of $45 million from RTW in exchange for a royalty payable by Cytokinetics of 2% on sales of CK-274 in the United States and certain European countries. If Cytokinetics utilizes the full $90 million in development from RTW, it would be responsible to pay RTW a 4% royalty on sales of CK-274 in the United States and certain European countries. The royalties payable by Cytokinetics are subject to royalty reductions if CK-274 is developed for potential other indications.

In addition, RTW has agreed to purchase from Cytokinetics its royalty rights on future sales of mavacamten, for a cash purchase price of $85 million, subject to certain closing conditions. In parallel with these agreements, RTW has purchased $50 million of Cytokinetics’ common stock at $25 per share.

About CK-274 and REDWOOD-HCM

CK-274 is a novel, oral, small molecule cardiac myosin inhibitor that company scientists discovered independent of its collaborations. CK-274 arose from an extensive chemical optimization program conducted with careful attention to therapeutic index and pharmacokinetic properties that may translate into next-in-class potential in clinical development. CK-274 was designed to reduce the hypercontractility that is associated with hypertrophic cardiomyopathy (HCM). In preclinical models, CK-274 reduces myocardial contractility by binding directly to cardiac myosin at a distinct and selective allosteric binding site, thereby preventing myosin from entering a force producing state. CK-274 reduces the number of active actin-myosin cross bridges during each cardiac cycle and consequently reduces myocardial contractility.

REDWOOD-HCM is a multi-center, randomized, placebo-controlled, double-blind, dose-finding Phase 2 clinical trial in patients with symptomatic, obstructive HCM. The primary objective of the trial is to determine the safety and tolerability of CK-274. The secondary objectives are to describe the concentration-response and dose-response relationship of CK-274 on the resting and post-Valsalva left ventricular outflow tract gradient as measured by echocardiography during 10 weeks of treatment.