Cytokinetics and Royalty Pharma expand funding deal up to $575M

Cytokinetics (CYTK) and Royalty Pharma (RPRX) announced they have entered into a strategic funding collaboration providing capital to support the commercialization of aficamten and advance the company’s expanding cardiovascular pipeline while diversifying access to capital as the company advances its muscle biology-directed specialty cardiology business.”We have enjoyed a longstanding relationship with Royalty Pharma and this expanded strategic collaboration reinforces our shared conviction in the value of our cardiac myosin focused pipeline of drug candidates,” said Robert I. Blum, Cytokinetics’ President and Chief Executive Officer. “This diversified access to capital from a trusted partner supports our launch of aficamten while also fortifying our capital structure and lowering our cost of capital as we become a sustainable company. We believe this deal delivers on stated objectives of advancing our later-stage portfolio of potential medicines alongside our goal of increasing shareholder value.” The transaction includes funding for planned commercialization, development funding, royalty restructuring and revenue sharing and the purchase of Cytokinetics equity, together, affording Cytokinetics $250M closing and up to a total of $575M to support the company’s further maturation and corporate development.