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Cytokinetics (CYTK) Down on Report of Novartis Not Interested
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Cytokinetics, Incorporated (CYTK - Free Report) shares declined 16.41% after a report came out that Swiss pharma giant Novartis (NVS - Free Report) is no longer interested in buying it.
Earlier this week, it was reported that Novartis was closing in to acquire Cytokinetics, which has a promising late-stage cardiovascular drug, aficamten, in its pipeline. The report led to a surge in the share price of Cytokinetics.
We remind investors that Cytokinetics has been in the news in the past couple of months on reports of a plausible acquisition by one of the pharma giants. Reportedly, AstraZeneca and Johnson & Johnson were also eyeing the company. Consequently, the share price of the company skyrocketed in this time frame.
Per the latest report, Cytokinetics might also raise capital. Also, Novartis is not out of the race. Either NVS or any other bigwig might re-emerge as a potential buyer.
Shares of the company have rallied 139.3% in the past six months compared with the industry’s 1.8% growth.
Image Source: Zacks Investment Research
Merger and acquisition activity has picked up in the pharma and biotech space after a lull. Pharma and biotech bigwigs are constantly looking to bolster product portfolios and pipelines through collaborations and buyouts amid generic competition for key drugs.
While oncology and immuno-oncology seem to be key focus areas, treatments for obesity, rare diseases and gene-editing companies also hold potential, making them lucrative investment areas.
We note that shares of Cytokinetics skyrocketed last month after the late-stage study, SEQUOIA-HCM, on aficamten showed a statistically significant and clinically meaningful increase in the primary efficacy endpoint in patients with obstructive hypertrophic cardiomyopathy.
Cytokinetics plans to submit regulatory applications for aficamten in the second half of 2024.
CYTK also has another candidate in its pipeline, omecamtiv mecarbil, for the treatment of advanced or worsening heart failure with reduced ejection fraction (“HFrEF”). The FDA earlier granted a complete response letter for omecamtiv mecarbil to its new drug application seeking approval for HFrEF.
Meanwhile, Novartis is now a pure-play pharmaceutical company following the spin-off of its generic division, Sandoz. It is looking to solidify its portfolio through strategic acquisitions and deals.
Earlier in 2023, Novartis acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition added two late-stage candidates, atrasentan and zigakibart, for the treatment of immunoglobulin A nephropathy to NVS’ pipeline.
Zacks Rank and Stocks to Consider
Cytokinetics currently has a Zacks Rank #3 (Hold). Some better-ranked biotech companies are Regeneron Pharmaceuticals (REGN - Free Report) and Acadia (ACAD - Free Report) . Regeneron currently sports a Zacks Rank #1 (Strong Buy), while Acadia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Regeneron’s 2024 earnings have risen from $41.57 per share to $43.66 per share. REGN’s stock has surged 26.9% in the past year. The company beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 12.34%.
The loss per share estimate for Acadia has narrowed to 33 cents from 41 cents for 2023. The bottom-line estimate for 2024 is currently pinned at $1.04. ACAD's shares have risen 11.6% in the past six months.
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Cytokinetics (CYTK) Down on Report of Novartis Not Interested
Cytokinetics, Incorporated (CYTK - Free Report) shares declined 16.41% after a report came out that Swiss pharma giant Novartis (NVS - Free Report) is no longer interested in buying it.
Earlier this week, it was reported that Novartis was closing in to acquire Cytokinetics, which has a promising late-stage cardiovascular drug, aficamten, in its pipeline. The report led to a surge in the share price of Cytokinetics.
We remind investors that Cytokinetics has been in the news in the past couple of months on reports of a plausible acquisition by one of the pharma giants. Reportedly, AstraZeneca and Johnson & Johnson were also eyeing the company. Consequently, the share price of the company skyrocketed in this time frame.
Per the latest report, Cytokinetics might also raise capital. Also, Novartis is not out of the race. Either NVS or any other bigwig might re-emerge as a potential buyer.
Shares of the company have rallied 139.3% in the past six months compared with the industry’s 1.8% growth.
Image Source: Zacks Investment Research
Merger and acquisition activity has picked up in the pharma and biotech space after a lull. Pharma and biotech bigwigs are constantly looking to bolster product portfolios and pipelines through collaborations and buyouts amid generic competition for key drugs.
While oncology and immuno-oncology seem to be key focus areas, treatments for obesity, rare diseases and gene-editing companies also hold potential, making them lucrative investment areas.
We note that shares of Cytokinetics skyrocketed last month after the late-stage study, SEQUOIA-HCM, on aficamten showed a statistically significant and clinically meaningful increase in the primary efficacy endpoint in patients with obstructive hypertrophic cardiomyopathy.
Cytokinetics plans to submit regulatory applications for aficamten in the second half of 2024.
CYTK also has another candidate in its pipeline, omecamtiv mecarbil, for the treatment of advanced or worsening heart failure with reduced ejection fraction (“HFrEF”). The FDA earlier granted a complete response letter for omecamtiv mecarbil to its new drug application seeking approval for HFrEF.
Meanwhile, Novartis is now a pure-play pharmaceutical company following the spin-off of its generic division, Sandoz. It is looking to solidify its portfolio through strategic acquisitions and deals.
Earlier in 2023, Novartis acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition added two late-stage candidates, atrasentan and zigakibart, for the treatment of immunoglobulin A nephropathy to NVS’ pipeline.
Zacks Rank and Stocks to Consider
Cytokinetics currently has a Zacks Rank #3 (Hold). Some better-ranked biotech companies are Regeneron Pharmaceuticals (REGN - Free Report) and Acadia (ACAD - Free Report) . Regeneron currently sports a Zacks Rank #1 (Strong Buy), while Acadia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Regeneron’s 2024 earnings have risen from $41.57 per share to $43.66 per share. REGN’s stock has surged 26.9% in the past year. The company beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 12.34%.
The loss per share estimate for Acadia has narrowed to 33 cents from 41 cents for 2023. The bottom-line estimate for 2024 is currently pinned at $1.04. ACAD's shares have risen 11.6% in the past six months.