Cytokinetics Shares Surge Following Sanofi's Acquisition of Rights

image

Cytokinetics Shares Surge Following Sanofi's Acquisition of Rights

Investing.com -- Cytokinetics, Incorporated (NASDAQ:CYTK) shares rose 4.8% after the company announced that Sanofi would acquire exclusive rights to develop and commercialize aficamten in Greater China. This move highlights the drug's potential in treating hypertrophic cardiomyopathy (HCM).

The announcement reflects a strategic shift as Sanofi takes over the rights initially obtained from Cytokinetics by Corxel Pharmaceuticals for the Greater China market, which includes mainland China, Hong Kong SAR, Macau SAR, and Taiwan. This development is significant for Cytokinetics as it will receive royalties from future sales of aficamten in the region, alongside up to $150 million in milestone payments for development and commercial targets.

Aficamten, a cardiac myosin inhibitor, has received Breakthrough Therapy Designation for symptomatic obstructive HCM from the National Medical Products Administration of China and has been accepted for priority review for a New Drug Application. The drug is part of a comprehensive clinical development program aimed at improving exercise capacity and symptoms in patients with HCM, a condition characterized by thickening of the heart muscle.

Cytokinetics' President and CEO, Robert I. Blum, expressed excitement about the new partnership with Sanofi, emphasizing the company's cardiovascular expertise and the shared goal of expanding access to aficamten for HCM patients in Greater China.

Although the financial terms of the agreement between Sanofi and Corxel were not disclosed, Cytokinetics anticipates additional undisclosed payments related to the execution of the deal. The focus now shifts to leveraging Sanofi's resources to advance aficamten's commercial prospects in this critical market.

Aficamten's clinical development includes several ongoing studies, such as the positive pivotal Phase 3 trial SEQUOIA-HCM and MAPLE-HCM, which compares aficamten monotherapy to metoprolol monotherapy. The drug has also been submitted for marketing authorization in the European Union, and there is a New Drug Application with the U.S. FDA target action date of September 26, 2025.

Investors are reacting positively to the news, as the partnership with Sanofi could significantly enhance the commercialization and development of aficamten and potentially increase Cytokinetics' revenue streams in the burgeoning Chinese market.