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Cytokinetics (CYTK)
NASDAQ:CYTK
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Cytokinetics
(NASDAQ:CYTK)
45Neutral
Positive Factors
Market Position
If approved, management reiterated expectation for a differentiated label and risk mitigation profile for aficamten compared to a competitor's product.
Regulatory Process
The FDA does not plan to hold an advisory committee meeting to review the NDA for aficamten, indicating a smoother regulatory path.
Negative Factors
Market Sentiment
The price target for Cytokinetics has been lowered from $74 to $67, reflecting moderated US & EU launch trajectory for aficamten due to greater clarity on approval timing.
Cytokinetics (CYTK) vs. S&P 500 (SPY)
Market Cap
$5.26B
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth145.34%
EPS Growth3.20%
CountryUS
Employees423
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-5.28
Shares Outstanding118,410,690
10 Day Avg. Volume1,625,640
30 Day Avg. Volume1,828,603
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)281.96
Price to Cash Flow (P/CF)-19.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$81.43Price Target Upside83.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Cytokinetics Business Overview & Revenue Model
Company DescriptionCytokinetics, Inc. operates as a biopharmaceutical company, which focuses on the discovery and development of muscle activators as potential treatment for debilitating diseases. It conducts a Phase 2 clinical trials program for tirasemtiv, including a Phase 2b clinical trial in patients with ALS, known as BENEFIT-ALS (Blinded Evaluation of Neuromuscular Effects and Functional Improvement with Tirasemtiv in ALS). The company was founded on August 5, 1997 and is headquartered in South San Francisco, CA.
How the Company Makes MoneyCytokinetics makes money through a combination of partnerships, collaborations, and potential future product sales. The company enters into strategic alliances with larger pharmaceutical companies to co-develop and commercialize its drug candidates, often receiving upfront payments, milestone payments, and royalties on potential sales. For instance, Cytokinetics has collaborated with companies like Amgen and Astellas to advance its drug pipeline. Additionally, as its drug candidates progress through clinical trials and potentially receive regulatory approval, sales of these therapeutics will become a key revenue stream. The company's revenue model is significantly influenced by the success of its clinical trials and the subsequent commercialization of its products.
Cytokinetics Financial Statement Overview
Summary
Cytokinetics faces significant financial challenges with persistent losses, high leverage, and negative cash flows. While revenue shows some potential recovery, operational inefficiencies and negative equity indicate a need for strategic restructuring. The strong cash reserve is a positive aspect, providing some buffer against immediate liquidity issues.Income Statement
Cytokinetics has experienced volatile revenue trends, with a decline in revenue from 2022 to 2023 and a slight recovery in 2024. Gross profit margins are positive for 2024 but have been negative in previous years, indicating inconsistent cost management. The net profit margin is negative, showing consistent net losses. EBIT and EBITDA margins are also negative, highlighting operational challenges.30
Negative
Balance Sheet
The company's balance sheet shows significant financial leverage, with a negative stockholders' equity position in recent years, indicating potential solvency concerns. The debt-to-equity ratio is not meaningful due to negative equity, and return on equity is negative, reflecting losses. Despite this, cash holdings are substantial, which may provide short-term liquidity.20
Very Negative
Cash Flow
Operating cash flows are consistently negative, indicating ongoing operational cash burn. Free cash flow is also negative, but there has been significant financing activity, suggesting reliance on external funding. Free cash flow growth is not observable due to negative values, yet the ratio of operating cash flow to net income is stable, reflecting cash management within loss parameters.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 18.47M | 7.53M | 94.59M | 70.43M | 55.83M | Gross Profit |
| 18.47M | -322.59M | -146.22M | -89.51M | -41.12M | EBIT |
| -536.25M | -496.20M | -324.20M | -186.31M | -93.94M | EBITDA |
| -493.48M | -456.68M | -329.40M | -176.34M | -86.78M | Net Income Common Stockholders |
| -589.53M | -526.24M | -402.55M | -242.37M | -164.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.08B | 614.82M | 782.58M | 471.64M | 464.06M | Total Assets |
| 1.40B | 824.32M | 1.01B | 841.32M | 533.80M | Total Debt |
| 695.45M | 755.77M | 749.34M | 269.93M | 138.94M | Net Debt |
| 600.59M | 642.75M | 683.76M | 157.26M | 55.95M | Total Liabilities |
| 1.54B | 1.21B | 1.12B | 597.46M | 420.42M | Stockholders Equity |
| -135.37M | -386.32M | -107.90M | 243.86M | 113.38M |
| Cash Flow | Free Cash Flow | |||
| -399.80M | -415.75M | -310.85M | -191.39M | -2.11M | Operating Cash Flow |
| -395.89M | -414.33M | -299.52M | -142.52M | 8.94M | Investing Cash Flow |
| -553.10M | 239.25M | -262.13M | -147.78M | -196.51M | Financing Cash Flow |
| 930.61M | 221.32M | 516.17M | 319.98M | 234.12M |
Cytokinetics Technical Analysis
Negative
44.40
Price Trends
46.52
Negative
49.01
Negative
51.84
Negative
Market Momentum
-0.84
Positive
46.29
Neutral
43.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYTK, the sentiment is Negative. The current price of 44.4 is below the 20-day moving average (MA) of 45.47, below the 50-day MA of 46.52, and below the 200-day MA of 51.84, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 43.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYTK.
Cytokinetics Risk Analysis
Cytokinetics disclosed 49 risk factors in its most recent earnings report. Cytokinetics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cytokinetics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.46B | 32.10 | 8.05% | ― | 17.35% | 151.40% | |
69 Neutral | $9.68B | 41.27 | 19.71% | ― | 52.97% | ― | |
64 Neutral | $127.22B | ― | -3.15% | ― | 11.64% | -114.72% | |
49 Neutral | $5.31B | ― | -93.03% | ― | -10.48% | -18.79% | |
49 Neutral | $6.84B | 0.05 | -53.14% | 2.48% | 24.49% | -3.26% | |
49 Neutral | $30.91B | ― | -414.62% | ― | 22.97% | 38.54% | |
45 Neutral | $5.26B | ― | 435.49% | ― | 145.34% | 3.20% |
* Healthcare Sector Average
Performance Comparison
CYTK
Cytokinetics
44.40
-19.35
-30.35%
ALNY
Alnylam Pharma
241.75
93.22
62.76%
BMRN
BioMarin Pharmaceutical
70.60
-13.79
-16.34%
IONS
Ionis Pharmaceuticals
32.90
-9.28
-22.00%
VRTX
Vertex Pharmaceuticals
502.92
94.15
23.03%
SRPT
Sarepta Therapeutics
98.37
-25.39
-20.52%
Cytokinetics Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.43% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant regulatory progress and strategic partnerships for aficamten, a strong financial position, and pipeline advancements. However, increased expenses and ongoing regulatory challenges were noted. Despite these challenges, the progress and strategic moves position the company well for future growth.Highlights
Regulatory Progress for Aficamten
NDA accepted by FDA, MAA validated by EMA, and NDA accepted by NMPA in China with priority review. Engaging in parallel regulatory interactions for potential global approvals.
Strategic Partnerships
Entered a collaboration with Bayer for aficamten in Japan, securing EUR50 million upfront and potential EUR490 million in commercial milestone payments. Additionally, Sanofi acquired rights to aficamten in China.
Financial Strength
Ended Q4 2024 with $1.2 billion in cash and investments. Generated $16.9 million in revenue in Q4 2024, a significant increase from $1.7 million in Q4 2023.
Pipeline Advancements
Started COMET-HF Phase 3 trial for omecamtiv mecarbil and AMBER-HFpEF Phase 2 trial for CK-586. Initiated Phase 1 study for CK-089, a neuromuscular disease candidate.
Lowlights
Increased Expenses and Losses
R&D expenses increased to $93.6 million in Q4 2024 from $85 million in Q4 2023. Net loss for Q4 2024 was $150 million, up from $136.9 million in Q4 2023.
Ongoing Regulatory Challenges
Continued interaction with FDA for aficamten NDA review, emphasizing the ongoing need to address questions and prepare for inspections.
Company Guidance
During Cytokinetics' Fourth Quarter 2024 Conference Call, several key metrics and updates were shared. The company highlighted that their NDA for aficamten was accepted by the FDA with a PDUFA date of September 26, 2025, and the MAA was validated by the EMA, with priority review given in China. They are preparing for potential commercial launches across multiple geographies, including the U.S. and Europe, and have ongoing regulatory interactions. Financially, Cytokinetics ended the quarter with $1.2 billion in cash and investments, and they expect 2025 GAAP operating expenses to range between $670 million and $710 million. The company's R&D expenses for Q4 2024 were $93.6 million, and G&A expenses were $62.3 million. Additionally, Cytokinetics is advancing its clinical programs with MAPLE-HCM, ACACIA-HCM, and COMET-HF, and has formed strategic partnerships with Sanofi and Bayer to expand aficamten's global reach. They also launched an unbranded disease awareness campaign, "HCM Beyond The Heart," to increase awareness of hypertrophic cardiomyopathy (HCM).Cytokinetics Corporate Events
Product-Related AnnouncementsRegulatory Filings and Compliance
Cytokinetics Completes Midcycle Review with FDA for Aficamten
Neutral
Mar 10, 2025
Cytokinetics has completed its midcycle review with the FDA regarding its new drug application for aficamten, aimed at treating obstructive hypertrophic cardiomyopathy. The FDA has indicated that it does not plan to hold an advisory committee meeting for this application, and a Late Cycle meeting is expected in June 2025. The company anticipates a differentiated label and risk mitigation profile for aficamten if approved, although detailed updates on FDA communications will not be shared.
Executive/Board Changes
Cytokinetics Appoints Robert E. Landry to Board
Neutral
Feb 11, 2025
On February 10, 2025, Cytokinetics, Incorporated appointed Robert E. Landry to its Board of Directors as a Class II member, with an initial term until the 2027 annual stockholders meeting. Landry was also appointed to the Audit Committee, and he will participate in the company’s non-employee director compensation arrangements, which include annual retainers and equity grants. This appointment aligns with Cytokinetics’ governance policies, as Landry is considered independent under relevant guidelines and requirements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.