Cytokinetics and Royalty Pharma Expand Funding Collaboration Up to $575 Million

Cytokinetics, Incorporated and Royalty Pharma have entered into a strategic funding partnership to support the commercialization of aficamten and the expansion of Cytokinetics’ cardiovascular pipeline. The agreement is designed to provide diversified access to capital and strengthen Cytokinetics' specialty cardiology business focused on muscle biology.

Cytokinetics President and CEO, Robert I. Blum, emphasized the long-standing relationship with Royalty Pharma, noting that the collaboration aligns with the company's goals of advancing its cardiac myosin drug candidates and enhancing shareholder value. Pablo Legorreta, Royalty Pharma’s CEO, highlighted the partnership's potential to significantly improve the lives of patients with hypertrophic cardiomyopathy (HCM), subject to FDA approval.

The deal provides Cytokinetics with $250 million upon closing and up to $575 million in total, encompassing commercial launch funding, development funding, royalty restructuring, revenue sharing, and equity purchase.

Key components of the deal include:

1. Commercial Launch Funding: Cytokinetics will receive $50 million initially and can draw an additional $175 million within 12 months of aficamten’s approval for obstructive HCM. This capital will be repaid over 10 years.

2. Royalty Restructuring: Royalty Pharma’s royalty on aficamten has been adjusted to 4.5% up to $5 billion of annual net sales and 1% above this threshold, compared to the previous structure of 4.5% up to $1 billion and 3.5% above $1 billion.

3. Development Funding: Cytokinetics will receive $100 million upfront for a Phase 3 trial of omecamtiv mecarbil for heart failure with reduced ejection fraction. If successful and FDA-approved, Royalty Pharma will receive fixed payments totaling $100 million and an incremental 2% royalty on annual net sales.

4. Phase 2 Trial for CK-586: Cytokinetics will receive $50 million to fund a Phase 2 trial for CK-586 in heart failure with preserved ejection fraction. Royalty Pharma has an option to invest an additional $150 million for Phase 3 development, with eligibility for a $150 million milestone payment upon FDA approval and a 4.5% royalty on net sales.

5. Equity Purchase: Royalty Pharma will purchase $50 million of Cytokinetics’ common stock during a planned public offering.

This strategic collaboration aims to bolster Cytokinetics' financial stability, support the commercialization of aficamten, and advance its pipeline, which includes omecamtiv mecarbil and CK-586. Aficamten, a selective cardiac myosin inhibitor, aims to improve exercise capacity and relieve symptoms in HCM patients. Omecamtiv mecarbil, a cardiac myosin activator, targets heart failure with reduced ejection fraction, while CK-586 focuses on heart failure with preserved ejection fraction.

Cytokinetics, a late-stage cardiovascular biopharmaceutical company, specializes in muscle activators and inhibitors as treatments for cardiac muscle performance disorders. With multiple trials underway, including SEQUOIA-HCM, MAPLE-HCM, and ACACIA-HCM, Cytokinetics is preparing regulatory submissions for aficamten in the U.S. and Europe.

Royalty Pharma, established in 1996, is a major buyer of biopharmaceutical royalties and funds innovation through partnerships with various entities in the biopharmaceutical sector. Their portfolio includes royalties on over 35 commercial products and several development-stage candidates.

This partnership marks a significant step for Cytokinetics, providing the necessary financial support to bring their innovative cardiology treatments to market and improve patient outcomes in heart disease.

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