Public Equity Report: Investors see Cytokinetics’ moves as doubt for M&A

The market reaction to Cytokinetics’ steps to shore up its balance sheet this week suggested that investors have lost confidence that the potential takeout target will accept an offer from a suitor anytime soon.

The biotech tapped investors for $500 million in a dilutive follow-on and entered a deal with Royalty Pharma plc (NASDAQ:RPRX) that could add another $575 million to the till, with cash earmarked for the planned launch of aficamten to treat obstructive hypertrophic cardiomyopathy, clinical trials of two more heart failure treatments, and an equity purchase...