Cytokinetics CEO puts nail in takeout rumour coffin, says buyer walked away

05 Jun 2024
firstwordpharma.com
AcquisitionPhase 3
After months of speculation – and investor hopes – that cardiovascular drug developer Cytokinetics would be bought up by a major pharma for billions, the biotech seemingly put an end to that possibility last month by doubling down on a financing arrangement with Royalty Pharma. Now, CEO Robert Blum has shed more light on why a takeout deal never materialised in what he said will be the company’s “final statements on this matter.”
Acquisition rumours first surfaced in December ahead of a readout for the highly anticipated Phase III SEQUOIA-HCM trial evaluating Cytokinetics' cardiac myosin inhibitor aficamten in patients with symptomatic obstructive hypertrophic cardiomyopathy. Then in January, a report that Novartis was close to finalising a deal to buy the biotech further sent investors salivating, though days later, the Swiss pharma was said to have shied away.
Detailed results for aficamten presented in May suggested the treatment could be a safer alternative to Bristol Myers Squibb’s approved therapy Camzyos (mavacamten), reigniting rumours once again. For more, see Spotlight On: Has Phase III win put Cytokinetics back on the M&A chopping block?
However, Cytokinetics later signed a deal with Royalty Pharma worth up to $1 billion, a financing that Mizuho Securities analysts said “furthers the stock from the potential takeout thesis.”
No actionable proposal
Blum seemingly confirmed that Cytokinetics had indeed attracted the interest of several companies, saying Wednesday at the Jefferies Global Healthcare Conference that “throughout 2023, Cytokinetics engaged in business development discussions with potential strategic partners.”
Additionally, he said that Cytokinetics was approached by a third party “leading up to and after our late December 2023 disclosure of top-line results from SEQUOIA-HCM… regarding its interest in an acquisition for all of our company.”
Blum said that while the company proposed terms “that we believed were going to be mutually acceptable… the third party did not move forward with an acquisition.”
“If there had been an actionable proposal in the best interests of shareholders, it would have received support of our board and would have been executed with support of management,” Blum concluded. He also seemed to address the takeout rumour mill, adding that “it is unfortunate that private confidential discussions leaked.”
Investors seemed to react positively to Blum’s candour, as Cytokinetics’ stock jumped about 10% on Wednesday.
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