Cytokinetics, Incorporated (NASDAQ: CYTK)
Cytokinetics, Incorporated (CYTK), a clinical stage biopharmaceutical company yesterday announced positive top line results from COSMIC-HF a phase 2 trial of Omecamtiv Mecarbil in patients with chronic heart failure. The study showed significant statistical improvement in a number of measures of cardiac function.
Cytokinetics, Incorporated CEO Comments
“We are pleased that this Phase 2 trial of omecamtiv mecarbil met the objectives related to safety, tolerability, pharmacokinetics and pharmacodynamics in a population of chronic heart failure patients,” said Robert I. Blum, president and CEO at Cytokinetics. “Omecamtiv mecarbil has the potential to offer a new treatment option for patients with heart failure; we look forward to working with Amgen and the medical community to better understand the potential clinical application of this novel drug candidate.” Globe Newswire
CYTK Technical Analysis
CYTK gapped up in price yesterday to $7.36, up from the prior day’s close of $6.89, which is a 7% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on September 24th, when it closed at $7.48. Taking a further look further back on the chart, we can see the stock has been trading in a range between $6.00 – $7.80 dating back to the middle of May of this year. With yesterday’s gap up, we are now trading near the high of the range. The obvious resistance level will be $7.80, I would be looking for the stock to re test it. The stock has a relatively low float of 30.19 million shares and is trading over 9 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. The stock did reach pre market highs of $8.04 but gave back $0.68 at the open, or equivalent to 8%. For trading purposes my entry point would have been $7.40 looking for a run to $7.80. My stop loss would have been $7.25 fearing anything below that and the stock would start to fill in the gap up.
Cytokinetics, Incorporated, a clinical stage biopharmaceutical company, focuses on the discovery and development of novel small molecule therapeutics that modulate muscle function for the treatment of serious diseases and medical conditions. It is involved in developing Tirasemtiv, a fast skeletal troponin activator that is in Phase II clinical trials for the treatment of amyotrophic lateral sclerosis; CK-2127107 that is in Phase I for the treatment of spinal muscle atrophy; and Omecamtiv mecarbil, which is in Phase II clinical trials for the potential treatment of heart failure. The company has a strategic alliance with Amgen Inc. to discover, develop, and commercialize small molecule therapeutics that activate cardiac muscle contractility for applications in the treatment of heart failure; and Astellas Pharma Inc. to advance novel therapies for diseases and medical conditions associated with muscle weakness. Cytokinetics, Incorporated was founded in 1997 and is headquartered in South San Francisco, California. Yahoo Finance