Novartis Retreats From Cytokinetics Deal, Dashing Hopes For Multi-Billion Dollar Acquisition
Novartis AG (NYSE: NVS) has decided to step back from pursuing the Cytokinetics Inc (NASDAQ: CYTK) acquisition, dealing a blow to the potential deal with the promising heart-drug developer.
The biotech company, currently running a sale process, leaves room for speculation on whether Novartis or another suitor might re-emerge or if the company will explore alternative options such as a capital raise.
Focused on developing muscle activators and inhibitors, Cytokinetics aims to provide potential treatments for individuals facing debilitating diseases affecting muscle performance.
Also Read: Cytokinetics' Drug Potential: Analyst Suggests Key Role Of Established Pharma For Potential Launch.
In November, Bloomberg reported that Cytokinetics was reportedly exploring potential takeover options as it has garnered interest from at least one major pharmaceutical company in recent months.
Citing Truist analysts, the Wall Street Journal reports the estimated Cytokinetics' cardiomyopathy drug sales of up to $3.6 billion by 2032.
Novartis, grappling with the looming loss of patent protection for key products like heart drug Entresto, seeks new avenues for growth.
While facing declining revenue in the coming years, the pharmaceutical giant's recent positive study results for drugs such as Kisqali and Pluvicto have boosted its stock.
However, Chief Executive Vasant Narasimhan clarified on CNBC that the company's M&A strategy is centered on sub-$5 billion assets.
Price Action: CYTK shares are down 21.40% at $79.92 on the last check Thursday.
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