Potential Cytokinetics acquirer might wait until pivotal data – Truist

Analysts at Truist said on Wednesday that they believe positive pivotal data (expected YE2023) would be value-creating for Cytokinetics (NASDAQ:) following a Bloomberg article that stated the company is considering options following takeover interest.

Bloomberg said the late-stage biotech firm developing cardiovascular treatments is assessing its options after receiving takeover interest, with the South San Francisco-based company attracting interest from at least one major drugmaker in recent months.

Bloomberg, citing people with knowledge of the matter, said the company is now evaluating its next steps, although potential suitors may wait until an upcoming data release before pursuing any formal bids.

As noted by Truist, CYTK is expecting the topline results of a Phase 3 trial at the end of the year. Truist reiterated its Buy rating on the stock and believes the results will create value as the stock has pulled back significantly over 2023. In addition, they expect CYTK mgmt to be strategic about the timing of any potential deal.

“We also think that a potential acquirer might wait until the pivotal data. We continue to expect the pivotal trial to be positive,” added the analysts.