Shares of Cytokinetics Inc. (CYTK) slipped over 18% on Thursday morning after the biopharmaceutical company announced an expanded funding collaboration with Royalty Pharma totaling up to $575 million and a $500 million stock offering.
CYTK is currently trading at $48.39, down $10.84 or 18.30%, on the Nasdaq. The stock opened its trading at $49.25 after closing Wednesday at $59.23. The stock has traded between $25.98 and $110.25 in the past 52-week period.
Royalty Pharma and Cytokinetics announced a strategic funding collaboration providing capital to support the commercialization of aficamten and advance the company's expanding cardiovascular pipeline while diversifying access to capital as the company advances its muscle biology-directed specialty cardiology business.
"We are excited to support Cytokinetics as the company advances towards commercialization of aficamten," said Pablo Legorreta, Royalty Pharma's founder and Chief Executive Officer. "This is our third transaction with Cytokinetics and highlights our ability to structure creative, win-win funding solutions and underscores the breadth of our funding capabilities. Aficamten has demonstrated an impressive clinical profile in its pivotal Phase 3 study, and we believe it has the potential to significantly improve the lives of patients with HCM, if approved by the FDA."
Cytokinetics announced the pricing of a public offering of 9.8 million shares of its common stock at a price to the public of $51.00 per share.
The proceeds to Cytokinetics from the offering are expected to be about $500 million. The offering is expected to close on May 28, 2024.
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