Piper Sandler maintains that AdCom vote against Cytokinetics’ OM is a positive

Piper Sandler analyst Yasmeen Rahimi keeps her Overweight rating and $72 price target on Cytokinetics following FDA AdCom vote that the benefits of omecamtiv mecarbil, OM, do not outweigh its risks for the treatment of heart failure with reduced ejection fraction. The negative response will likely be viewed favorably by investors because the company will be able to redirect its resources away from OM, which is a "capital heavy commercialization distraction in a crowded market" and focus on aficamten, the analyst tells investors in a research note. Rahimi adds she hopes that the management would not conduct additional trials if the AdCom committee deemed it was necessary for approval and stick to their guns in allocating their resources to aficamten following today’s decision.