Cytokinetics Plunges after Heart Drug Fails to Meet Goals

Jacob Harper |

An experimental heart drug being developed by biotech Cytokinetics Incorporated (CYTK) in conjunction with Amgen Inc. (AMGN) failed its mid-stage trials, leaving its future uncertain. While Amgen – who are the largest independent biotech in the world and recently closed a $10.4 billion buyout of Onyx Pharamceuticals (ONXX) – shrugged off the bad news, the experimental drug's setback was a huge blow to the much smaller Cytokinetics, and that company has lost almost a quarter of its value on the day.



The experimental drug in question, omecamtiv mecarbil, uses a unique molecule to theoretically treat the shortness of breath experienced by heart failure patients by improving cardiac contractility. However, a 613-patient trial of the intravenous version of the drug failed to produce positive results, and puts the efficacy of the drug, and its future on the market, into question.

In an investment overview released on Aug. 7, Cytopkinetics had warned that omecamtiv mecarbil was still three to four years away from commercialization, but that they hoped to enter Phase III by 2014. With the setback arising from the underwhelming mid-stage trials, however, it now appears unlikely those benchmarks will be met for the intravenous version of the drug. Amgen has said they will continue testing an oral version of the omecamtiv mecarbil, though that as well is still years from the market.

Cytokinetics has one other drug in development called tirametsiv that is designed to treat ALS.  That drug is still in Phase IIb trials, and likewise years away from market.

Amgen weathered the news fine, and is up 1.23 to hit $110.28.

Though Amgen has yet to dismiss omecamtiv mecarbil outright, its murky future sent Cytokinetics reeling. Cytokinetics’ stock is down a whopping 24.74 percent to hit $7.91 a share.

(image of lab courtesy of Wikimedia  Commons)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CYTK Cytokinetics Incorporated 12.50 -0.20 -1.57 298,778 Trade
AMGN Amgen Inc. 164.71 -0.20 -0.12 6,526,446 Trade
MTPR Metapower Intl Inc New 0.00 0.00 0.00 0

Comments

Emerging Growth

Reliq Health Technologies Inc.

Moseda Technologies Inc provides mobile and IT cloud computing to increase operational efficiency and security. It develops SmartFleet, a solution designed for commercial use, as well as SmartCare, a mHealth…

Private Markets

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…

8tracks

Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.