Amgen, Cytokinetics, Royalty Pharma deal

Cytokinetics will receive $100 million in a deal with Royalty Pharma for royalties tied to heart failure candidate omecamtiv mecarbil (AMG 423). The biotech also said it will exercise an option under its deal with Amgen allowing it to invest $40 million in the candidate's Phase III development, co-promote the candidate and receive additional royalties.

Royalty Pharma will receive a 4.5% royalty on omecamtiv mecarbil sales. The royalty rate would rise to 5.5% if U.S. marketing approval is delayed. Cytokinetics will receive $90 million in cash up front. Royalty Pharma will invest $10 million in Cytokinetics through the purchase of 875,656 Cytokinetics shares at $11.42. The price is a 10% premium to Cytokinetics' closing price of $10.40 on Feb. 1, before the deal was announced. The partners expect the deal to close Feb. 6...