Cytokinetics, Inc. (CYTK)

[Solantey]

Amgen Owns 4,884,906 Shares of $CYTK. Amgen should make a buyout offer of $7.00/share.

If Amgen offered $7.00 share to buy the company it would cost Amgen approximately $217M to acquire Cytokinetics.

In return Amgen would receive a company with $100M in cash plus approximately $175M in tax-loss carry forward. More importantly Amgen would also save milestone plus royalty payments to Cytokinetics that could exceed $1B. The milestone and royalty payments from Astellas could be worth $300M or more.

The current share price substantially undervalues the company considering the realistic possibility of a takeover offer from Amgen.