Benzinga | May 3, 2021 02:48PM EDT

Astellas Walks Away From $450M Research & Discovery Partnership With Cytokinetics

* Cytokinetics Inc (NASDAQ: CYTK) revealed in an SEC filing that Astellas Pharma Inc (OTC:ALPMY) is walking away from a pact to research and develop skeletal sarcomere activators for diseases associated with muscle weakness.

* Astellas had extended the research pact initially set to expire on December 31 last year, through March of this year.

* But last week, Astellas gave written notice that it wants out of the pact altogether and gives up "all licenses and other rights" granted through the pact.

* In 2013, Astellas had initially signed up to get exclusive rights to co-develop and sell skeletal sarcomere activators in all indications.

* In turn, Cytokinetics had the right to co-promote and do some sales work in the U.S., Canada, and Europe.

* Should these drugs have been taken forward solely by Astellas, Cytokinetics could have received over $450 million in pre-commercialization and commercialization milestones plus royalties.

* No reason was given for the breakup, which will be official this November 1, nor updates on the programs. Cytokinetics is set to release its financials later this week.

* It comes two years after Cytokinetics' reldesemtiv missed the primary endpoint in phase 2 amyotrophic lateral sclerosis trial. The Astellas-partnered drug failed to beat placebo on a lung function test in May 2019.

* It also comes a few months after Amgen Inc (NASDAQ: AMGN) culled its pact with Cytokinetics for heart failure omecamtiv mecarbil after unimpressive Phase 3 data.

* Price Action: CYTK shares are up 1.65% at $25.86, and ALPMY shares are up 0.98% at $15.14 during market trading hours on the last check Monday.