Buy Rating Justified by Cytokinetics’ Aficamten Favorable Trial Data and Safety Profile

Leerink Partners analyst Roanna Ruiz maintained a Buy rating on Cytokinetics (CYTK – Research Report) on May 13 and set a price target of $92.00.

Roanna Ruiz has given her Buy rating due to a combination of factors surrounding Cytokinetics’ promising data for aficamten. Ruiz highlights the drug’s improved dosage titration without interruptions caused by low left ventricular ejection fraction (LVEF), which is significant for its safety profile. Additionally, the drug showed statistically significant and clinically meaningful improvements in both primary and secondary endpoints. These outcomes were consistent across all predefined subgroups, bolstering confidence in the drug’s efficacy and potential market advantage.
Furthermore, Ruiz notes the debate over the Risk Evaluation and Mitigation Strategy (REMS) for aficamten, suggesting that its comprehensive data could lead to a potentially less restrictive REMS compared to similar treatments. The drug’s wide therapeutic window and lower risk of drug-drug interactions (DDIs) also contribute to its positive profile. While there was volatility in the stock price due to discussions over variability in LVEF readings, Ruiz maintains that the overall benefits presented by the new granular data from the SEQUOIA trial underscore the drug’s strengths as a next-in-class cardiac myosin inhibitor, justifying the Buy rating.

Ruiz covers the Healthcare sector, focusing on stocks such as United Therapeutics, ARS Pharmaceuticals, and Cytokinetics. According to TipRanks, Ruiz has an average return of -15.6% and a 36.30% success rate on recommended stocks.

In another report released on May 14, JMP Securities also reiterated a Buy rating on the stock with a $106.00 price target.

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Cytokinetics (CYTK) Company Description:

Cytokinetics, Inc. operates as a biopharmaceutical company, which focuses on the discovery and development of muscle activators as potential treatment for debilitating diseases. It conducts a Phase 2 clinical trials program for tirasemtiv, including a Phase 2b clinical trial in patients with ALS, known as BENEFIT-ALS (Blinded Evaluation of Neuromuscular Effects and Functional Improvement with Tirasemtiv in ALS). The company was founded on August 5, 1997 and is headquartered in South San Francisco, CA.