Cytokinetics/Amgen enter R&D accord

Cytokinetics and fellow USA-based biotechnology firm Amgen have entered a strategic collaboration to discover, develop and commercialize novel small-molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure, for all territories except Japan. In addition, Amgen obtained an option to participate in future development and commercialization of Cytokinetics' lead drug candidate arising from this program, CK-1827452, which recently completed two Phase I clinical trials.

Under the terms of the deal, Cytokinetics will receive a non-refundable upfront license and technology access fee of $42.0 million. Amgen has also purchased 3,484,806 shares of the firm's common stock at $9.47 per share and an aggregate purchase price of approximately $33.0 million. On the day of the news, January 3, shares in Cytokinetics jumped 18.3% to $8.85.

Joint research activities will focus on identifying and characterizing activators of cardiac myosin as back-up and follow-on potential drug candidates to CK-1827452. During the initial two-year research term, in addition to performing research at its own expense, Cytokinetics will continue to solely fund all development activities for CK-1827452 subject to Amgen's option which is exercisable upon the satisfaction of conditions including pre-defined Phase IIa clinical trial data. To exercise its option, Amgen would pay a non-refundable fee of $50.0 million and thereafter will be responsible for development and commercialization of the agent and related compounds, at its expense, subject to Cytokinetics' participation rights.