Cytokinetics' $575M Royalty Deal Faces Investor Backlash

Biotech's agreement with Royalty Pharma dampens acquisition hopes and revives controversial drug trial.

Cytokinetics' stock dropped nearly 20% after the deal announcement.
The agreement includes $250 million upfront and up to $575 million in total funding.
Investors are frustrated as the deal lowers the chances of a buyout by larger pharmaceutical companies.
The deal funds a Phase 3 trial for omecamtiv mecarbil, a previously failed heart drug.
Analysts criticize the terms, highlighting increased financial risk for Cytokinetics.