Cytokinetics and Amgen entered into a strategic collaboration to discover, develop, and commercialize small molecule therapeutics that activate cardiac muscle contractility for potential applications in the treatment of heart failure.
Cytokinetics will receive an upfront license and technology access fee of $42 million. In addition, Amgen has purchased 3,484,806 shares of Cytokinetics common stock at $9.47 per share and an aggregate purchase price of approximately $33 million.
In addition, Amgen obtained an option to participate in future development and commercialization of Cytokinetics' lead drug candidate arising from this program, CK-1827452, which recently completed two Phase I trials. Joint research activities will focus on identifying and characterizing activators of cardiac myosin as back-up and follow-on potential drug candidates to CK-1827452.
The collaboration is worldwide, excluding Japan. During the initial two year research term, Cytokinetics will fund the research and development activities for CK-1827452. Amgen's option is exercisable upon the satisfaction of certain conditions, including CK-1827452 being developed to meet predefined criteria in Phase IIa trials.
If Amgen exercises its option, the company will pay $50 million. Thereafter, it will be responsible for development and commercialization of CK-1827452 and related compounds, subject to development and commercial participation rights of Cytokinetics.
Cytokinetics may be eligible to receive precommercialization and commercialization milestone payments of up to $600 million on CK-1827452 and other products arising from the research as well as royalties that escalate based on increasing levels of annual net sales of products commercialized under the collaboration. Cytokinetics also has the opportunity to earn increased royalties by participating in Phase III development costs. In that case, Cytokinetics could co-promote products in North America and would be expected to play a significant role in the agreed commercial activities in institutional care settings, at Amgen's expense.