This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cytokinetics Scores Amgen Deal

Shares of Cytokinetics (CYTK - Get Report) soared after its partner Amgen (AMGN - Get Report) set plans to work on a new heart failure treatment.

Amgen will pay Cytokinetics an upfront payment of $42 million for licensing and access to its technology. It will purchase 3.5 million Cytokinetics shares at $9.47 a share.

Cytokinetics stock were gaining 14.2% to $8.54, while Amgen's shares rose 1.6% to $69.37.

The collaboration, which is worldwide outside of Japan, involves the discovery, development and marketing of a new treatment intended to activate heart muscle contractions. During the first two years of the plan, Cytokinetics will fund its own research. If the drug's development meets predefined criteria and certain other conditions are satisfied, Amgen will exercise an option to take over development and pay Cytokinetics a $50 million exercise fee.

Cytokinetics may also be eligible to receive payments of up to $600 million related to its lead drug, called CK-1827452, and other treatments developed as a result of the research. It may also receive royalties on sales of the drugs, and increase royalty gains if it helps fund late-stage human trials.

In that case, Cytokinetics could co-promote its drugs in North America at Amgen's expense. If Amgen chooses not to exercise its option, the collaboration agreement would end and Cytokinetics may choose to independently develop the drug.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,659.53 -13.07 -0.07%
S&P 500 2,053.37 +1.55 0.08%
NASDAQ 4,762.8050 +4.9260 0.10%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs