Cytokinetics AdComm Outcome Might Be Blessing In Disguise, This Analyst Said

Needham initiates coverage on Cytokinetics Inc CYTK with a Buy rating and a price target of $60.
Tuesday, FDA's Cardiovascular and Renal Drugs Advisory Committee voted 8-3 against the approval of Cytokinetics' omecamtiv mecarbil.
The analyst writes that these concerns were previously known but appear to be more severe than expected.
Post-AdCom, the odds of omecamtiv FDA approval have fallen from 60-65% to below 50%. The analyst also expects that, if approved, omecamtiv is likely to carry labeling restrictions to restrict wide usage and minimize safety concerns.
Like other investors, Needham does not consider omecamtiv as a critical asset for the company, given that aficamten, which has the potential to address a much larger market opportunity, is in phase 3 trials and expected to report top-line in 2H23.
Several investors may view the AdCom outcome and a potential non-approval of omecamtiv as a blessing in disguise, forcing Cytokinetics to focus its efforts and investments solely on aficamten.
Price Action: CYTK shares are up 12.10% at $40.35 on the last check Wednesday.

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