Cytokinetics price target lowered to $72 from $108 at Needham

Needham analyst Serge Belanger lowered the firm’s price target on Cytokinetics (CYTK) to $72 from $108 and keeps a Buy rating on the shares. The company’s announcement of an expanded strategic collaboration with Royalty Pharma (RPRX) for up to $575MM in additional funding will surely disappoint investors who were anticipating a Cytokinetics acquisition, and shares could be down 10%-20% on the news, the analyst tells investors in a research note. While the firm remains at Buy on valuation and expectations that aficamten has potential for a differentiated product label, its price target cut reflects lowered near-term M&A expectations and the lack of major value-driving catalysts until 2025, Needham added.