CYTK - News out! $25M royalty payment, possible buyout
Cytokinetics Will Receive $25 Million Plus Potential Milestone Payments and Royalties
THOUSAND OAKS, Calif. AND SOUTH SAN FRANCISCO, Calif, (June 12, 2013) - Amgen (AMGN) and Cytokinetics Incorporated (CYTK) today announced an expansion of their strategic collaboration to include Japan. In 2006, Cytokinetics and Amgen entered into a collaboration to discover, develop and commercialize novel small-molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure. Omecamtiv mecarbil is the most advanced drug candidate in this collaboration. Initially, Cytokinetics` license to Amgen for omecamtiv mecarbil excluded Japan. Under the amendment to the collaboration announced today, the companies have agreed on terms expanding Amgen`s license for omecamtiv mecarbil and related compounds to include Japan.
In consideration of the expanded license, Cytokinetics will receive $25 million from Amgen comprised of a non-refundable license fee of $15 million and $10 million for Amgen`s purchase of Cytokinetics` common stock. The companies have executed a stock purchase agreement providing for the sale of Cytokinetics` common stock to Amgen at a price per share equal to the 10-day trailing average of the closing price of Cytokinetics` stock on the last trading day prior to execution of the stock purchase agreement.
