Biopharmaceutical company Cytokinetics (NASDAQ:CYTK) stock dropped 5.6% on January 9 as Novartis (NYSE:NVS) CEO Vasant Narasimhan refrained from commenting on a potential deal, putting an end to speculations about Novartis acquiring CYTK.
Earlier, the Wall Street Journal reported that Novartis was close to acquiring Cytokinetics. However, speaking to CNBC, Narasimhan refrained from providing details on individual deals. However, he emphasized that his company’s focus is on smaller bolt-on acquisitions. Cytokinetics’ market capitalization currently stands at approximately $10 billion. Narasimhan further clarified that Novartis’ M&A (mergers and acquisitions) strategy is concentrated on assets valued below $5 billion.
While CYTK stock closed lower on Tuesday, it has already gained approximately 135% in one year. A positive phase 3 clinical trial of Aficamten, its therapy for the treatment of Hypertrophic Cardiomyopathy, has significantly boosted its share price. Moreover, speculation that large drugmakers are considering buying CYTK further lifted its share price.
Is Cytokinetics a Good Stock to Buy?
Wall Street is bullish about Cytokinetics stock due to the improved commercial outlook for Aficamten. With 14 Buy and two Hold recommendations, CYTK stock has a Strong Buy consensus rating. Moreover, analysts’ average price target of $89.50 implies a downside potential of 12.23%.
