) recently joined forces with
Astellas Pharma Inc.
) for the research, development and commercialization of skeletal
The companies will focus on identifying new treatments for
diseases and medical conditions related to muscle weakness. This
collaboration will combine Cytokinetics' expertise in the
discovery and mechanistic biology of small molecule activators of
skeletal muscle contractility with Astellas' capabilities in
discovery, development, and commercialization.
Under this deal, Cytokinetics could receive more than $40
million from Astellas in the form of an upfront fee and
reimbursement of sponsored R&D activities during the first
two years of the collaboration. The company could also
receive more than $450 million on the achievement of
pre-commercialization and commercialization milestones as well as
royalties from Astellas.
Under this deal, Astellas has exclusive rights todevelop and
commercializecollaboration products globally. However,
Cytokinetics has an option to co-promote these products in the US
and Canada. For some expenses related to promotional
activities, Astellas will reimburse the amount to
Additionally, the deal gives Astellas exclusive rights to
co-develop and commercialize CK-2127107, a Cytokinetics
candidate, for non-neuromuscular indications. As per the deal,
Cytokinetics will conduct phase I trials and certain pre-phase II
activities for CK-2127107. Astellas will take up subsequent
development and commercialization activities. We note that
CK-2127107 is currently in a phase I study.
Cytokinetics carries a Zacks Rank #2 (Buy) while Astellas
carries a Zacks Rank #4 (Sell). This deal is a major positive for
Cytokinetics. It not only provides it with a strong development
partner like Astellas, it also provides the company with funds in
the form of upfront and milestone payments plus royalties. This
deal brings together Cytokinetics' discovery capabilities and
Astellas' experience and strong presence in the Japanese
Currently, companies like
) look well positioned with a Zacks Rank #1 (Strong Buy).
ASTELLAS PHARMA (ALPMY): Get Free Report
CYTOKINETCS INC (CYTK): Free Stock Analysis
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis
SANTARUS INC (SNTS): Free Stock Analysis
To read this article on Zacks.com click here.