Shares of Cytokinetics (CYTK - Get Report) were up 6.3%, to $11.05, in premarket trading Thursday. The South San Francisco, Calif.-based company said it agreed to sell to Royalty Pharma a 4.5% royalty on potential worldwide sales of omecamtiv mecarbil for an upfront payment of $90 million. Cytokinetics is developing omecamtiv mecarbil in collaboration with Amgen (AMGN - Get Report) as a potential treatment for heart failure.
The royalty rate may increase as much as an additional 1% under certain circumstances. Royalty Pharma also agreed to buy $10 million of Cytokinetics' common stock. In addition, Cytokinetics has agreed with Royalty Pharma to exercise its option to co-invest $40 million in the Phase 3 development program of omecamtiv mecarbil under its collaboration with Amgen.Achillion Pharmaceuticals ( ACHN) shares were up 2.2%, to $4.20. Ladenburg Thalmann on Thursday initiated coverage of New Haven, Conn.-based Achillion with a buy rating and a $10 price target.
"We see two very clear pathways for significant value creation for investors," wrote Ladenburg analyst Christopher James in a note. "The first is with the ACH-4471 program for multiple rare diseases driven by disorders of the complement system. The second path is through its HCV program, which is partnered with Janssen Pharmaceuticals."
Among the other stock movers Thursday morning is Qiagen (QGEN - Get Report) , whose shares were trading at $29.72, up 2.6%. The Venlo, Netherlands-based sample technologies company on Wednesday reported fourth-quarter adjusted earnings per share of 15 cents and net sales of $366.5 million.