UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 3, 2023, Cytokinetics, Incorporated (the "Registrant") announced its financial results for the second quarter ended June 30, 2023. The full text of the press release issued in connection with this announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished under this Item 2.02 shall not be considered “filed” under the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, unless the Registrant expressly sets forth in such future filing that such information is to be considered “filed” or incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated August 3, 2023
104 The cover page of this report has been formatted in Inline XBRL
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CYTOKINETICS, INCORPORATED |
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Date: |
August 3, 2023 |
By: |
/s/ John O. Faurescu |
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John O. Faurescu, Esq., VP, Associate General Counsel & Secretary |
CYTOKINETICS REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS
Completed Enrollment in SEQUOIA-HCM,
Pivotal Phase 3 Trial of Aficamten in Obstructive HCM;
On Track for Topline Results by the End of the Year
Initiated Enrollment in MAPLE-HCM,
a Phase 3 Clinical Trial Comparing Aficamten and Metoprolol in Obstructive HCM
ACACIA-HCM, a Pivotal Phase 3 Clinical Trial of Aficamten in Non-Obstructive HCM,
Expected to Start in September 2023
Company Reduces Projected Spending by Approximately 15% and
Revises 2023 Financial Spending Guidance
SOUTH SAN FRANCISCO, Calif., Aug. 3, 2023 - Cytokinetics, Incorporated (Nasdaq: CYTK) reported financial results for the second quarter of 2023. Net loss for the second quarter was $128.6 million, or $1.34 per share, compared to net loss for the second quarter of 2022 of $19.8 million, or $0.23 per share. Cash, cash equivalents and investments totaled $592.6 million at June 30, 2023.
“In the second quarter we made substantial progress across our pipeline, with notable advancements in the development program of aficamten, including our completing enrollment in SEQUOIA-HCM, with 282 patients, making it the largest randomized trial of an investigational therapy in HCM. We are pleased with ongoing study conduct and expect topline results from SEQUOIA-HCM by year end,” said Robert I. Blum, Cytokinetics’ President and Chief Executive Officer. “During the quarter we also started a second Phase 3 clinical trial of aficamten in obstructive HCM, MAPLE-HCM, furthered preparations for ACACIA-HCM, our Phase 3 clinical trial in non-obstructive HCM expected to start next month and began a Phase 1 study of CK-586, a cardiac myosin inhibitor, that we plan to develop for the potential treatment of heart failure with preserved ejection fraction. Finally, in the second quarter, we prioritized company activities and reduced expected operating expenses for 2023 by approximately 15 percent in order to further extend our cash runway through key corporate milestones.”
Q2 and Recent Highlights
Cardiac Muscle Programs
aficamten (cardiac myosin inhibitor)
omecamtiv mecarbil (cardiac myosin activator)
CK-3828136 (CK-136, cardiac troponin activator)
CK-4021586 (CK-586, cardiac myosin inhibitor)
Pre-Clinical Development and Ongoing Research
Upcoming Corporate Milestones
Cardiac Muscle Programs
aficamten (cardiac myosin inhibitor)
omecamtiv mecarbil (cardiac myosin activator)
CK-3828136 (CK-136, cardiac troponin activator)
CK-4021586 (CK-586, cardiac myosin inhibitor)
Financials
Revenues for the three and six months ended June 30, 2023 were $0.9 million and $5.5 million, respectively, compared to $89.0 million and $90.1 million for the corresponding periods in 2022. The changes in revenues are due primarily to the recognition of $87.0 million in 2022 of deferred revenues for royalties on the net sales of products containing mavacamten.
Research and development expenses for the three and six months ended June 30, 2023 increased to $83.2 million and $162.6 million, respectively, compared to $57.1 million and $103.1 million for the same periods in 2022. The changes were primarily due to increased spending for our cardiac myosin inhibition programs.
General and administrative expenses for the three months ended June 30, 2023 decreased to $39.7 million from $42.7 million from the three months ended June 30, 2022, primarily due to lower outside service spend. General and administrative expenses for the six months ended June 30, 2023 increased to $89.4 million from $75.8 million the six months ended June 30, 2022, primarily due to higher outside service spend and an increase in personnel related costs including stock-based compensation recorded during the period.
Revised 2023 Financial Guidance
The company today revised its financial guidance due to the reduction in expected operating expenses following the receipt of a CRL from the FDA regarding the New Drug Application for omecamtiv mecarbil and the discontinuation of COURAGE-ALS, the Phase 3 trial of reldesemtiv. The company anticipates operating expenses for 2023 will be in the range of $390 to $410 million, and net cash utilization will be approximately $310 to $320 million, resulting in projected savings of approximately 15% relative to forecasted spending for 2023. The company expects to end 2023 with more than $510 million, representing nearly two years of forward cash based on its 2023 projected net cash utilization.
Conference Call and Webcast Information
Members of Cytokinetics’ senior management team will review the company’s second quarter 2023 results on a conference call today at 4:30 PM Eastern Time. The conference call will be simultaneously webcast and can be accessed from the Investors & Media section of Cytokinetics’ website at www.cytokinetics.com. The live audio of the conference call can also be accessed by telephone by registering in advance at the following link: Cytokinetics Q2 2023 Earnings Conference Call. Upon registration, participants will receive a dial-in number and a unique passcode to access the call. An archived replay of the webcast will be available via Cytokinetics’ website for twelve months.
About Cytokinetics
Cytokinetics is a late-stage, specialty cardiovascular biopharmaceutical company focused on discovering, developing and commercializing first-in-class muscle activators and next-in-class muscle inhibitors as potential treatments for debilitating diseases in which cardiac muscle performance is compromised. As a leader in muscle biology and the mechanics of muscle performance, the company is developing small molecule drug candidates specifically engineered to impact myocardial muscle function and contractility. Aficamten is a next-in-class cardiac myosin inhibitor, currently the subject of two Phase 3 clinical trials: SEQUOIA-HCM, evaluating aficamten in patients with obstructive hypertrophic cardiomyopathy (HCM), and MAPLE-HCM, evaluating aficamten as monotherapy compared to metoprolol as monotherapy in
patients with obstructive HCM. ACACIA-HCM, an additional Phase 3 clinical trial of aficamten in patients with non-obstructive HCM, is expected to start soon. Cytokinetics is also developing omecamtiv mecarbil, a cardiac muscle activator in patients with heart failure. Additionally, Cytokinetics is developing CK-136, a cardiac troponin activator for the potential treatment HFrEF and other types of heart failure, such as right ventricular failure, resulting from impaired cardiac contractility, and CK-586, a cardiac myosin inhibitor with a mechanism of action distinct from aficamten for the potential treatment of HFpEF. In 2023, Cytokinetics is celebrating its 25-year history of pioneering innovation in muscle biology and related pharmacology focused to diseases of muscle dysfunction and conditions of muscle weakness.
For additional information about Cytokinetics, visit www.cytokinetics.com and follow us on Twitter, LinkedIn, Facebook and YouTube.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Cytokinetics claims the protection of the Act’s Safe Harbor for forward-looking statements. Examples of such statements include, but not limited to, statements, express or implied, relating to our or our partners’ research and development and commercial readiness activities, including the initiation, conduct, design, enrollment, progress, continuation, completion, timing and results of any of our clinical trials, or more specifically, our ability to obtain approval of our marketing authorisation application for omecamtiv mecarbil in the E.U., our ability to publish topline results of SEQUOIA-HCM by the end of 2023, our ability to start ACACIA-HCM, our phase 3 clinical trial of aficamten in patients with non-obstructive HCM in September 2023, our ability to announce the results of the phase 1 clinical trial of CK-136 in the second half of 2023, our ability to advance CK-586 into clinical development in the second quarter of 2023, the timing of interactions with FDA or any other regulatory authorities in connection to any of our drug candidates and the outcomes of such interactions; statements relating to the potential patient population who could benefit from omecamtiv mecarbil, aficamten, CK-136, CK-586 or any of our other drug candidates; statements relating to our ability to receive additional capital or other funding, including, but not limited to, our ability to meet any of the conditions relating to or to otherwise secure additional sale proceeds or loan disbursements under any of our agreements with entities affiliated with Royalty Pharma or additional milestone payments from Ji Xing; statements relating to our operating expenses or cash utilization for the remainder of 2023, and statements relating to our cash balance at year-end 2023 or any other particular date or the amount of cash runway such cash balances represent at any particular time. Such statements are based on management's current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to Cytokinetics’ need for additional funding and such additional funding may not be available on acceptable terms, if at all; potential difficulties or delays in the development, testing, regulatory approvals for trial commencement, progression or product sale or manufacturing, or production of Cytokinetics’ drug candidates that could slow or prevent clinical development or product approval; patient enrollment for or conduct of clinical trials may be difficult or delayed; the FDA or foreign regulatory agencies may delay or limit Cytokinetics’ or its partners’ ability to conduct clinical trials; Cytokinetics may incur unanticipated research and development and other costs; standards of care may change, rendering Cytokinetics’ drug candidates obsolete; and competitive products or alternative
therapies may be developed by others for the treatment of indications Cytokinetics’ drug candidates and potential drug candidates may target. For further information regarding these and other risks related to Cytokinetics’ business, investors should consult Cytokinetics’ filings with the Securities and Exchange Commission, particularly under the caption “Risk Factors” in Cytokinetics’ Annual Report on Form 10-K for the year 2022. Forward-looking statements are not guarantees of future performance, and Cytokinetics’ actual results of operations, financial condition and liquidity, and the development of the industry in which it operates, may differ materially from the forward-looking statements contained in this press release. Any forward-looking statements that Cytokinetics makes in this press release speak only as of the date of this press release. Cytokinetics assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
CYTOKINETICS® and the CYTOKINETICS and C-shaped logo are registered trademarks of Cytokinetics in the U.S. and certain other countries.
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Contact:
Cytokinetics
Diane Weiser
Senior Vice President, Corporate Communications, Investor Relations
(415) 290-7757
Cytokinetics, Incorporated |
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Condensed Consolidated Balance Sheets |
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(in thousands) |
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June 30, 2023 |
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December 31, 2022 |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and short term investments |
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$ 565,722 |
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$ 782,577 |
Other current assets |
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20,853 |
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12,609 |
Total current assets |
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586,575 |
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795,186 |
Long-term investments |
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26,871 |
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46,708 |
Property and equipment, net |
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77,248 |
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80,453 |
Operating lease right-of-use assets |
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80,866 |
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82,737 |
Other assets |
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8,339 |
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9,691 |
Total assets |
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$ 779,899 |
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$ 1,014,775 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ 44,031 |
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$ 69,707 |
Short-term operating lease liabilities |
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15,701 |
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12,829 |
Other current liabilities |
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5,885 |
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2,081 |
Total current liabilities |
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65,617 |
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84,617 |
Term loan, net |
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62,492 |
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63,810 |
Convertible notes, net |
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547,288 |
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545,808 |
Liabilities related to revenue participation right purchase agreements, net |
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313,163 |
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300,501 |
Long-term operating lease liabilities |
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123,829 |
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126,895 |
Other non-current liabilities |
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625 |
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1,044 |
Total liabilities |
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1,113,014 |
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1,122,675 |
Commitments and contingencies |
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Stockholders’ deficit: |
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Common stock |
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94 |
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94 |
Additional paid-in capital |
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1,514,169 |
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1,481,590 |
Accumulated other comprehensive loss |
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(1,458) |
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(3,590) |
Accumulated deficit |
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(1,845,920) |
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(1,585,994) |
Total stockholders’ deficit |
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(333,115) |
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(107,900) |
Total liabilities and stockholders’ deficit |
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$ 779,899 |
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$ 1,014,775 |
Cytokinetics, Incorporated |
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Condensed Consolidated Statements of Operations |
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(in thousands except per share data) |
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(unaudited) |
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Three Months Ended |
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Six Months Ended |
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June 30, 2023 |
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June 30, 2022 |
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June 30, 2023 |
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June 30, 2022 |
Revenues: |
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Research and development revenues |
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$ 867 |
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$ 968 |
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$ 2,980 |
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$ 2,116 |
Milestone revenues |
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— |
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1,000 |
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2,500 |
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1,000 |
Realization of revenue participation right purchase agreement |
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— |
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87,000 |
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— |
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87,000 |
Total revenues |
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867 |
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88,968 |
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5,480 |
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90,116 |
Operating expenses: |
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Research and development |
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83,194 |
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57,126 |
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162,615 |
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103,061 |
General and administrative |
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39,722 |
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42,716 |
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89,387 |
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75,786 |
Total operating expenses |
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122,916 |
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99,842 |
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252,002 |
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178,847 |
Operating loss |
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(122,049) |
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(10,874) |
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(246,522) |
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(88,731) |
Interest expense |
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(7,045) |
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(2,807) |
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(14,006) |
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(5,553) |
Loss on extinguishment of debt |
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— |
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— |
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— |
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(2,693) |
Non-cash interest expense on liabilities related to revenue participation right purchase agreements |
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(6,322) |
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(7,003) |
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(12,602)
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(13,567)
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Interest and other income, net |
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6,779 |
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864 |
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13,204 |
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1,279 |
Net loss |
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$ (128,637) |
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$ (19,820) |
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$ (259,926) |
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$ (109,265) |
Net loss per share — basic and diluted |
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$ (1.34) |
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$ (0.23) |
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$ (2.72) |
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$ (1.28) |
Weighted-average number of shares used in computing net loss per share — basic and diluted |
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95,755 |
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85,731 |
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95,461 |
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85,366 |