View:
United States securities and exchange commission logo
September 22, 2021
Ching Jaw
Senior Vice President, Chief Financial Officer
Cytokinetics, Incorporated
280 East Grand Avenue
South San Francisco, CA 94080
Re: Cytokinetics,
Incorporated
Form 10-K for the
Fiscal Year Ended December 31, 2020
Filed February 26,
2021
File No. 000-50633
Dear Mr. Jaw:
We have limited our review of your filing to the financial
statements and related
disclosures and have the following comments. In some of our comments, we
may ask you to
provide us with information so we may better understand your disclosure.
Please respond to these comments within ten business days by
providing the requested
information or advise us as soon as possible when you will respond. If
you do not believe our
comments apply to your facts and circumstances, please tell us why in
your response.
After reviewing your
response to these comments, we may have additional comments.
Form 10-K for the Fiscal Year Ended December 31, 2020
Note 3. Research and Development Arrangements, page 92
1. We note that you
entered into a series of transactions with RTW Royalty Holdings
Designated Activity
Company and Ji Xing, which include a licensing and collaboration
arrangement, the sale
of your common stock, and your interest in future royalties on net
sales of products
containing the compound mavacamten. Please tell us and explain in
more detail how you
determined the total consideration to be $160 million related to these
arrangements and how
you allocated the consideration to each unit of accounting for these
arrangements under ASC
820 and ASC 606.
Ching Jaw
FirstName LastNameChing
Cytokinetics, Incorporated Jaw
Comapany 22,
September NameCytokinetics,
2021 Incorporated
September
Page 2 22, 2021 Page 2
FirstName LastName
2. We further note that under the license and collaboration arrangement
you concluded that
there was one performance obligation relating to the license of
functional intellectual
property, you satisfied this obligation, and recognized $36.5 million
in revenue during
fiscal 2020. Please explain to us in more detail how you determined
that there was one
performance obligation under this arrangement under ASC 606 and that
you satisfied the
obligation to recognize this revenue up-front.
In closing, we remind you that the company and its management are
responsible for the
accuracy and adequacy of their disclosures, notwithstanding any review,
comments, action or
absence of action by the staff.
You may contact Tara Harkins at (202) 551-3639 or Kevin Kuhar,
Accounting Branch
Chief, at (202) 551-3662 with any questions.
Sincerely,
Division of
Corporation Finance
Office of Life
Sciences