Cytokinetics Inc. (CYTK) and GlaxoSmithKline PLC (GSK) have
agreed to end their cancer-drug collaboration and license agreement
on Feb. 28, a move the biopharmaceutical company said "reinforces"
the company's push to focus on internal research related to muscle
function.
But investors weren't buying that rationale, sending its stock
down 17% after-hours to $2.60. The stock through the close was up
9.8% this year.
Cytokinetics said Wednesday that it would seek to license its
portfolio of three drug candidates so "they can be advanced in
further clinical trials." The company recently decided to
discontinue oncology research.
President and Chief Executive Robert Blum said, "We appreciate
the opportunity we have had to collaborate with GlaxoSmithKline
over the last eight years and we look forward to the possibility of
advancing these novel oncology drug candidates into next stages of
clinical development with another partner."
For its non-cancer operations, Cytokinetics has Amgen Inc.
(AMGN) as a partner on a heart-failure treatment. There were rumors
earlier this year that Amgen was eyeing the development-stage
biotechnology company for a takeover. They have been denied by
Cytokinetics.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com