NEW YORK (TheStreet) -- Shares of Cytokinetics (CYTK) - Get Cytokinetics, Incorporated Report rose 16.52% to $8.04 in late morning trading Wednesday after Roth Capital increased its price target on the biotech company to $18 from $13.
The firm also reiterated its "buy" rating on the stock.
"Important facets to our strengthened investment case include: 1) CYTK has shown its prowess in attracting significant partnerships in the form of both Amgen and Astellas, 2) each of these partners have approximately the same equity stake in CYTK as well, 3) a regulatory path forward for tirasemtiv for ALS is expected in the near term and, importantly, 4) the company has a strong financial footing with 2-3 years of cash on hand with the recently expanded Astellas collaboration (~$150 million pro forma cash)," the firm wrote in a research note.
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Cytokinetics' research and development programs focus on the biology of muscle function and are directed toward small molecule modulators of the ability of cardiac, smooth, and skeletal muscle to contract.
More than 1.7 million shares had changed hands as of 11:43 a.m., compared to the daily average volume of 341,284.