) surged 26.09% after the company reported fourth quarter 2013
earnings of 21 cents. The fourth quarter earnings compared
favorably with the Zacks Consensus Estimate of a loss of 20 cents
and year-ago loss of 48 cents per share.
The company's total revenue for the reported quarter was $24.3
million as compared to $2.2 million in the year-ago period.
Revenues in the fourth quarter 2013 were boosted by license
revenues from partners
Astellas Pharma, Inc.
). Revenues were above the Zacks Consensus Estimate of $11
Cytokinetics's full year 2013 loss of $1.24 per share was
narrower than the Zacks Consensus Estimate of a loss of $1.67 and
the year-ago loss (excluding restructuring cost) of $2.30 per
Revenues during the year increased 305.5% to $30.6 million.
Revenues beat the Zacks Consensus Estimate of $25 million.
In the fourth quarter of 2013, research and development (R&D)
expenses were $13.8 million, up 40.2% year over year. The high
R&D expenses were primarily because of increased investment
in pipeline. General and administrative expenses increased 7.3%
to $4.1 million, reflecting higher spends on corporate
Cytokinetics' lead candidate under its skeletal muscle
contractility program is tirasemtiv. Cytokinetics completed
enrolment of patients for its phase IIb BENEFIT-ALS (Blinded
Evaluation of Neuromuscular Effects and Functional Improvement
with Tirasemtiv in ALS) study on tirasemtiv during the quarter.
The phase IIb study is evaluating the safety, tolerability and
efficacy of tirasemtiv in patients suffering from amyotrophic
lateral sclerosis (ALS). The company expects to present data from
the BENEFIT-ALS study at the American Academy of Neurology annual
meeting in Apr 2014.
The company is also working with Astellas (CK-2127107, phase I)
and Amgen for omecamtiv mecarbil (phase II study: COSMIC-HF) and
CY 1211 (a phase I study planned).
Cytokinetics expects cash revenue for 2014 in the range of $19
million to $21 million. The guidance does not include deferred
revenues (approximately $10 million), stock compensation expense
($3 million) and potential milestone payments it may receive from
Additionally, the company expects cash R&D expenses and cash
G&A expenses in the range of $50-$53 million and $15-$17
We are pleased with the robust earnings and revenue beat in the
fourth quarter. We expect investor focus to remain on the
upcoming tirasemtiv data, which is scheduled to be released in
Cytokinetics, a biopharmaceutical company, currently has a Zacks
Rank #3 (Hold).Some better-ranked biopharma stocks include
). Actelion carries a Zacks Rank #1 (Strong Buy).
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