Amgen gets option for heart failure drug - NYTimes
<Hi Rick...Nice to see the CYTK deal today:-) I have a 5% allocation and I own it in real life>
NEW YORK, Jan 3 (Reuters) - Biotechnology company Amgen (AMGN.O: Quote, Profile , Research) formed an alliance with Cytokinetics (CYTK.O: Quote, Profile , Research) to gain an option on an experimental drug to treat heart failure, The New York Times reported on Wednesday.
Under the terms of the agreement, which could be announced Wednesday morning, Amgen will pay Cytokinetics $75 million for the option on the drug, which is about to enter the second of three stages of clinical trials, the Times said.
The payment would comprise $42 million in cash and the purchase of $33 million in Cytokinetics stock, giving Amgen about 7 percent of the smaller company, the paper added. Amgen would pay $9.47 a share, a 27-percent premium to Cytokinetics' closing price on Friday, the paper said.
Cytokinetics could eventually get additional payments of more than $600 million, plus royalties, if the drug reaches the market and has significant sales, the paper also reported.
Officials from both companies were not immediately available for comment. |
