CYTK was kicked off the nasdaq bio-tech index due to a market cap of below 200M. The index changes go into effect Monday and caused forced selling from certain institutions, especially today, the last day before the restructuring. CYTK should rebound towards it's normal trading area on Monday. Nothing to worry about.
Opposite thing happened when CYTK was added to the Russel 2000, it surged up on volume for a day (as institutions bought) and then soon fell back to it's original price area.
CYTK has multiple drugs in their pipeline. Their main compound (for heart failure) is already partnered with AMGN and has the potential to receive 600M in milestone payments and double digit royalties. So that alone should make the market cap more than this. The other lead compound CK-357 is in trials for ALS, and other muscle disorders. Yes, ALS is a smaller indication but there really is no treatment out there for those patients. Plus CYTK has orphan drug status for ALS and that would be huge given it makes it to the market. Add in all the other indications for 357 and you can see the investment opportunity. A partner would partner the drug for all the indications I believe monetizing the value a lot more. Look at their cash position vs market cap. They have no debt either and have large institutional ownership.
Yea I am not worried at all. I think lots of retailers got stopped out which only added fuel to the fire. Same thing happened with ALXA (except it rebounded last moments), and others who were removed. We will get our rebound Monday, since the pressure on the stock will be lifted.
I will add more once it hits $.90 and below. Very happy I sold a portion of my shares before this next leg down. The stock is broken in a number of ways, and while there will be some surges and spikes here and there, it is not going up (to stay) for at least a few more months.
Stock is not broken at all, just needs a catalyst to move it like the ALS data/potential partnership upcoming in the next several weeks. Like I said today was a fluke down day due to the re balancing of the NBI. It will go back up and trade until news hits.