Cytokinetics (CYTK) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 145.34%
• EPS Growth: 3.20%
• Country: US
• Employees: 498
• Sector: Healthcare
• Sector Strength: 79
• Industry: Biotechnology
• EPS (TTM): -5.28
• Shares Outstanding: 118,410,690
• 10 Day Avg. Volume: 2,494,605
• 30 Day Avg. Volume: 1,831,034
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 291.19
• Price to Cash Flow (P/CF): -20.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $82.43
• Price Target Upside: 120.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

Cytokinetics is currently facing financial challenges, with high leverage and ongoing losses. Despite these challenges, the company is making significant progress in regulatory approvals and strategic partnerships, which are positive long-term indicators. The overall score reflects caution due to financial and operational inefficiencies, balanced by potential growth from pipeline advancements and strategic moves.

Positive Factors

Cardiac Remodeling

Favorable impacts of aficamten on heart remodeling include reduction in LV mass and LA size, reduction in mitral regurgitation, no progression of replacement myocardial fibrosis, and a progressive reduction in interstitial myocardial fibrosis.

Efficacy

After 24 weeks of treatment with aficamten, 68% of patients demonstrated a complete hemodynamic response compared to 7% with placebo.

Safety Profile

Aficamten demonstrated a consistent safety profile with no significant differences in atrial fibrillation rates compared to placebo.

Negative Factors

Competitive Position

Safety concerns related to atrial fibrillation were reported in Edgewise's EDG-7500, affecting its competitive position.

Trial Concerns

Mgmt expressed concerns around the ODYSSEY-HCM trial including differences in dose strategy and potential steps taken to overenroll the study.

Cytokinetics Business Overview & Revenue Model

Company Description

Cytokinetics (CYTK) is a late-stage biopharmaceutical company focused on the discovery and development of muscle biology-driven treatments for people with diseases characterized by impaired muscle function, muscle weakness, and muscle fatigue. Operating in the biotechnology and pharmaceutical sectors, the company is dedicated to advancing novel therapeutics for diseases such as amyotrophic lateral sclerosis (ALS), heart failure, and hypertrophic cardiomyopathy. Its core products are small molecule muscle activators and inhibitors targeting muscle contractility and performance.

How the Company Makes Money

Cytokinetics makes money through a combination of partnerships, collaborations, and potential future product sales. The company enters into strategic alliances with larger pharmaceutical companies to co-develop and commercialize its drug candidates, often receiving upfront payments, milestone payments, and royalties on potential sales. For instance, Cytokinetics has collaborated with companies like Amgen and Astellas to advance its drug pipeline. Additionally, as its drug candidates progress through clinical trials and potentially receive regulatory approval, sales of these therapeutics will become a key revenue stream. The company's revenue model is significantly influenced by the success of its clinical trials and the subsequent commercialization of its products.

Cytokinetics Financial Statement Overview

Summary

Cytokinetics faces significant financial challenges with persistent losses, high leverage, and negative cash flows. While revenue shows some potential recovery, operational inefficiencies and negative equity indicate a need for strategic restructuring. The strong cash reserve is a positive aspect, providing some buffer against immediate liquidity issues.

Income Statement

Cytokinetics has experienced volatile revenue trends, with a decline in revenue from 2022 to 2023 and a slight recovery in 2024. Gross profit margins are positive for 2024 but have been negative in previous years, indicating inconsistent cost management. The net profit margin is negative, showing consistent net losses. EBIT and EBITDA margins are also negative, highlighting operational challenges.

Balance Sheet

The company's balance sheet shows significant financial leverage, with a negative stockholders' equity position in recent years, indicating potential solvency concerns. The debt-to-equity ratio is not meaningful due to negative equity, and return on equity is negative, reflecting losses. Despite this, cash holdings are substantial, which may provide short-term liquidity.

Cash Flow

Operating cash flows are consistently negative, indicating ongoing operational cash burn. Free cash flow is also negative, but there has been significant financing activity, suggesting reliance on external funding. Free cash flow growth is not observable due to negative values, yet the ratio of operating cash flow to net income is stable, reflecting cash management within loss parameters.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.47M	7.53M	94.59M	70.43M	55.83M
	Gross Profit
18.47M	-322.59M	-146.22M	-89.51M	-41.12M
	EBIT
-536.25M	-496.20M	-324.20M	-186.31M	-93.94M
	EBITDA
-493.48M	-456.68M	-329.40M	-176.34M	-86.78M
	Net Income Common Stockholders
-589.53M	-526.24M	-402.55M	-242.37M	-164.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.08B	614.82M	782.58M	471.64M	464.06M
	Total Assets
1.40B	824.32M	1.01B	841.32M	533.80M
	Total Debt
695.45M	755.77M	749.34M	269.93M	138.94M
	Net Debt
600.59M	642.75M	683.76M	157.26M	55.95M
	Total Liabilities
1.54B	1.21B	1.12B	597.46M	420.42M
	Stockholders Equity
-135.37M	-386.32M	-107.90M	243.86M	113.38M
Cash Flow		Free Cash Flow
-399.80M	-415.75M	-310.85M	-191.39M	-2.11M
	Operating Cash Flow
-395.89M	-414.33M	-299.52M	-142.52M	8.94M
	Investing Cash Flow
-553.10M	239.25M	-262.13M	-147.78M	-196.51M
	Financing Cash Flow
930.61M	221.32M	516.17M	319.98M	234.12M

Cytokinetics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYTK, the sentiment is Negative. The current price of 37.36 is below the 20-day moving average (MA) of 42.87, below the 50-day MA of 45.02, and below the 200-day MA of 51.14, indicating a bearish trend. The MACD of -1.24 indicates Positive momentum. The RSI at 30.18 is Neutral, neither overbought nor oversold. The STOCH value of 8.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYTK.

Cytokinetics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BMRN	78 Outperform	$12.87B	27.40	8.05%	―	17.35%	151.40%
SRPT	68 Neutral	$5.69B	22.84	19.71%	―	52.97%	―
VRTX	64 Neutral	$124.29B	―	-3.15%	―	11.64%	-114.72%
ALNY	55 Neutral	$34.10B	―	-414.62%	―	22.97%	38.54%
IONS	49 Neutral	$4.53B	―	-93.03%	―	-10.48%	-18.79%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
CYTK	45 Neutral	$4.80B	―	435.49%	―	145.34%	3.20%

Cytokinetics Corporate Events

Cytokinetics Completes Midcycle Review with FDA for Aficamten

Cytokinetics has completed its midcycle review with the FDA regarding its new drug application for aficamten, aimed at treating obstructive hypertrophic cardiomyopathy. The FDA has indicated that it does not plan to hold an advisory committee meeting for this application, and a Late Cycle meeting is expected in June 2025. The company anticipates a differentiated label and risk mitigation profile for aficamten if approved, although detailed updates on FDA communications will not be shared.

Cytokinetics Appoints Robert E. Landry to Board

On February 10, 2025, Cytokinetics, Incorporated appointed Robert E. Landry to its Board of Directors as a Class II member, with an initial term until the 2027 annual stockholders meeting. Landry was also appointed to the Audit Committee, and he will participate in the company’s non-employee director compensation arrangements, which include annual retainers and equity grants. This appointment aligns with Cytokinetics’ governance policies, as Landry is considered independent under relevant guidelines and requirements.