Cytokinetics sells Royalty Pharma a share of its heart drug for up to $575 million, lowering hopes of a buyout

Cytokinetics, a drugmaker that is expected to soon launch a promising new heart therapy called aficamten, said Wednesday that it had agreed to pay biotech firm Royalty Pharma a higher royalty on the medicine in return for up to $575 million, which will be used to fund the marketing of the drug and Cytokinetics’ ongoing research and development efforts.

Cytokinetics shares fell nearly 10% in after-hours trading after the announcement, which investors viewed as lowering the odds that the company will be purchased by a larger pharmaceutical company.

The firm also said that it would be raising $500 million through a stock sale. 

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