Greetings!
Good morning to all members of the underground. We wanted to update you on the biotech firm we found quite attractive at current levels and which we have continued to pound the table on. The company we are referencing is Cytokinetics Inc trading on the Nasdaq under the ticker "CYTK". Friday the stock closed at $4.00 a share, appearing once again to be under accumulation and should be watched closely. Currently the stock is trading at $5.40 a share up 79% from initial alert. Our alert price you may recall was at $3.02 a share around a month ago but we didnt want you to forget about what we feel is still a diamond in the rough.
Once again, Cytokinetics is a clinical-stage biopharmaceutical company focused on the discovery and development of novel small molecule therapeutics that modulate muscle function for the potential treatment of serious diseases and medical conditions. Cytokinetics' cardiac muscle contractility program is focused on cardiac muscle myosin, a motor protein essential to cardiac muscle contraction. Cytokinetics' lead compound from this program, omecamtiv mecarbil (formerly CK-1827452), a novel small molecule cardiac muscle myosin activator, is in Phase II clinical trials for the potential treatment of heart failure. Amgen Inc. has exercised an option for an exclusive license to develop and commercialize omecamtiv mecarbil worldwide (excluding Japan), subject to Cytokinetics' development and commercialization participation rights. In June 2009, Cytokinetics initiated a Phase I clinical trial of CK-2017357, a fast skeletal muscle troponin activator, in healthy volunteers in the United States. CK-2017357 is being developed as a potential treatment for diseases and medical conditions associated with aging, muscle wasting, and neuromuscular dysfunction. In January 2009, Cytokinetics announced the selection of a potential drug candidate directed towards smooth muscle contractility. Cytokinetics' smooth muscle myosin inhibitors have arisen from research focused towards potential treatments for diseases and conditions, such as systemic hypertension, pulmonary arterial hypertension or bronchoconstriction.
Cytokinetics' cancer development programs are focused on mitotic kinesins, a family of motor proteins essential to cell division. Cytokinetics is developing two drug candidates from this program, ispinesib and SB-743921, each an inhibitor of kinesin spindle protein. In addition, Cytokinetics and GlaxoSmithKline are collaborating on research and development activities focused on GSK-923295, an inhibitor of centromere-associated protein E (CENP-E).
All of these drug candidates and potential drug candidates have arisen from Cytokinetics' research activities and are directed towards the cytoskeleton. The cytoskeleton is a complex biological infrastructure that plays a fundamental role within every human cell. Additional information about Cytokinetics can be obtained at
www.cytokinetics.com.
On July 29th CYTK reported revenues from research and development collaborations of $71.9 million for the second quarter of 2009. Of this revenue, $50.0 million was related to Amgen's payment for the exercise of its option to an exclusive worldwide license (excluding Japan) to the company's cardiac contractility program, including omecamtiv mecarbil (formerly CK-1827452), and $21.4 million was related to the recognition of the remaining deferred revenue associated with Amgen's December 2006 non-exclusive license and technology access fee under the parties' collaboration and option agreement. The net income for the second quarter was $56.0 million, or $0.99 and $0.98 per basic and diluted shares, respectively. This compared to a net loss of $15.4 million, or $0.31 per basic and diluted share, for the same period in 2008. As of June 30, 2009, cash, cash equivalents and investments, excluding restricted cash and the put option on the company's auction rate securities, totaled $132.0 million
Cytokinetics appears quite appealing due not only to its low multiple but its attractive drug pipeline. Continue to keep CYTK on your radar! Notice how we described certain securities move up quietly through a slow accumulation process when others around them appear to be the ones talked most about? Then the accumulated security has solid news one day and the price explodes to the upside! Looks as if CYTK has done just that!
Again I would like to impress upon members of the underground especially you newbies is that always remember, pigs get slaughtered so when a stock has
gone up it never hurts to take half or your cost off the table and ride the rest. On the other hand if you are alerted to a stock and do decide to jump into one that has already run up significantly you may want to go easy at first.. Just a little advice from the Sandman.
Don't forget to please spread the word, because as I talked about before, there's always strength in numbers. Also a special thanks to all of you who continue to support the underground!!! We have grown at a significant rate thanks to you. One other thing to leave you with...Please remember that these stocks can be very volatile so as always be very diligent if you decide to jump into them
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