Business
Cytokinetics and JI XING Announce Expansion of Collaboration to Include Licensing of Omecamtiv Mecarbil in China; RTW to Add to Its Investment in Cytokinetics
JI XING to Develop and CommercializeNovel Cardiac Myosin Activator in Patients with Heart Failure Cytokinetics to Receive $70 Million in Committed Capital;Up
About this update from Cytokinetics, Incorporated
[{"type":"text","content":"JI XING to Develop and CommercializeNovel Cardiac Myosin Activator in Patients with Heart Failure Cytokinetics to Receive $70 Million in Committed Capital;Up to an Additional $330 Million in Potential Milestone Payments Plus Royalties Cytokinetics to Host Conference Call and Webcast Today at 8:30 am Eastern Time SOUTH SAN FRANCISCO, Calif., and SHANGHAI, China, Dec. 20, 2021 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) and Ji Xing Pharmaceuticals Limited (JI XING), a biopharmaceutical company based in Shanghai and backed by RTW Investments, LP (RTW), today announced an expansion of their collaboration by entering into an exclusive license and collaboration agreement to develop and commercialize omecamtiv mecarbil for the proposed treatment of heart failure with reduced ejection fraction (HFrEF) in Greater China. In addition to the license and collaboration agreement with JI XING, Cytokinetics has also entered into Common Stock Purchase Agreements that provide for the sale and issuance to entities affiliated with RTW of 511,182 of shares of Cytokinetics common stock at a price per share of $39.125. Pursuant to these transactions, Cytokinetics will receive committed capital of $70 million, comprised of $50 million from JI XING of upfront and near-term payments under the collaboration agreement and $20 million from RTW as proceeds for the sale of common stock. In addition, Cytokinetics will be eligible to receive up to $330 million from JI XING in additional milestone payments plus tiered royalties on the net sales of omecamtiv mecarbil in Greater China, subject to certain reductions. “We are pleased to expand our current relationship with JI XING to now include omecamtiv mecarbil, and believe that their expertise in drug development and commercialization in China can help bring omecamtiv mecarbil to substantially more patients in an important cardiovascular market,” said Robert I. Blum, Cytokinetics’ President and Chief Executive Officer. “JI XING shares our strategic vision of building a business franchise by leveraging investments in science, people and infrastructure as can benefit the potential commercialization of both omecamtiv mecarbil as well as aficamten which was the subject of our initial collaboration. Together, we believe more patients in China may benefit from both drug candidates.” “We have been imp...