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NEW YORK (TheStreet) -- Cytokinetics (CYTK) - Get Cytokinetics, Incorporated Report announced Thursday that its cardiac myosin activator drug omecamtiv mecarbil would advance to a phase III clinical trial.

Collaborator and fellow biotechnology company Amgen (AMGN) licensed the drug from Cytokinetics after entering a strategic partnership in 2006.

The trial for omecamtiv mecarbil is scheduled to initiate in the 2016 fourth quarter and will be conducted by Amgen.

Cytokinetics, based in San Francisco, will be eligible to earn pre- and post-commercialization milestone payments on the drug and royalties based on annual net sales once it is approved. The company can also generate increased royalties by sharing certain phase III development costs.

The drug is meant to enhance cardiac function by increasing contractility and is expected for use in patients with chronic heart failure.

In a phase II trial which ended in 2015, the drug met its primary objective and demonstrated statistically significant improvements in pre-specified secondary measures of cardiac function.

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Despite the announcement, shares of Cytokinetics closed down 13.01% to $10.50 on Thursday.

More than 2.67 million shares traded on Thursday vs. the stock's 30-day daily average of roughly 275,000 shares.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D.

The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: CYTK

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