-- Cytokinetics' (CYTK) rapid growth of the Myqorzo drug and peak US opportunity in obstructive hypertrophic cardiomyopathy are yet to be fully priced in by investors, RBC Capital Markets said in a Tuesday research report.
As Cytokinetics transitions from the clinical to the commercial stage, the brokerage said it expects upside on launch execution and potential merger optionality. If it continues to add 400 to 500 new patient starts monthly, it could result in substantial commercial growth through the year, the firm said.
The absence of considerable inventory contribution supports the view that there is organic demand for Myqorzo as most of the operational hurdles have been worked through, according to the note.
ACACIA-HCM to treat symptomatic non-obstructive hypertrophic cardiomyopathy is a "clear win" that can enable registration in this indication, according to the firm. RBC raised its probability of success forecast for the drug to 90% and 2035 US sales estimate to $1.30 billion, the firm said.
The firm removed its speculative risk rating on the stock and boosted its price target to $119 per share from $101.
Price: $73.59, Change: $-3.50, Percent Change: -4.54%