Cytokinetics CEO Robert Blum disclosed publicly for the first time rumors of a potential buyout that fell through late last year, according to a new securities filing.
The rumors first arose during the JP Morgan Annual Healthcare Conference in January, with the Wall Street Journal reporting Novartis was in discussions for an acquisition, pushing Cytokinetics’ market value past $10 billion. But the talks reportedly broke off a few days later, and the company opted instead to raise money through a deal with Royalty Pharma last month — a move Blum defended after claiming a “hijacked” narrative about his management.
In the new filing, Cytokinetics outlined comments Blum made Wednesday at the Jefferies Global Healthcare Conference. He acknowledged that the company had been in regular buyout discussions throughout 2023 ahead of, and after, a Phase 3 trial readout for the heart drug aficamten.
But the potential buyer — whom Blum did not name — opted not to move forward.
“Cytokinetics and that third party engaged in good faith negotiations,” Blum said, according to the filing. “The Board was supportive of moving forward on a potential acquisition on substantially the terms the counterparty communicated to us and on terms that we believed were going to be mutually acceptable. However, the third party did not move forward with an acquisition of our company at that time.”
Blum added if there had been an “actionable proposal,” the board would have accepted it. He emphasized Cytokinetics has been looking at “potential value creation opportunities” since before the JPM rumors surfaced and said it was “unfortunate” that such discussions leaked. Blum said the company would have no further comment on the matter.
Heading into Wednesday, Cytokinetics shares $CYTK were down about 55% since its January peak as the rumors were flying, closing Tuesday at $48.41 apiece. News of Blum’s comments sent its stock up about 7% in Wednesday morning trading.