Cytokinetics, Amgen expand heart failure deal to Japan

Cytokinetics Inc. (NASDAQ:CYTK) expanded to include Japanese rights a 2006 deal under which Amgen Inc. (NASDAQ:AMGN) has exclusive rights to Cytokinetics' cardiac contractility program. Amgen now has worldwide rights to develop and commercialize the program, of which the most advanced compound is omecamtiv mecarbil. An IV formulation of the small molecule cardiac myosin activator is in the Phase IIb ATOMIC-AHF trial to treat patients with left ventricular systolic dysfunction hospitalized for acute heart failure, with data expected this year. An oral formulation is in the Phase II COSMIC-HF trial to treat heart failure and left ventricular systolic dysfunction. Under the expanded deal, Cytokinetics will conduct a Phase I trial of omecamtiv mecarbil to support inclusion of Japanese patients in a potential Phase III program for the compound. Amgen, which is responsible for all development costs, will reimburse Cytokinetics for the trial.

In exchange for expanding the deal to Japan, Cytokinetics will receive $15 million up front and is eligible for up to $50 million in additional milestones, plus royalties on Japanese sales. Cytokinetics is already eligible for up to $600 million in milestones under the original deal. Amgen also will purchase 8.4 million Cytokinetics shares for $1.19 per share, or $10 million. The price is a 6% discount to Cytokinetics' close of $1.27 on Tuesday, before the expansion was announced. ...