Cytokinetics will sell percentage of royalties on heart failure drug for $90 million

Cytokinetics Inc. said Thursday it will sell a percentage of potential royalties on its heart failure drug with Amgen Inc. for $90 million cash to privately held Royalty Pharma.

Under the agreement, Royalty Pharma will receive 4.5% of royalties on global sales of omecamtiv mecarbil, which is in late-stage clinical trials, with an up to 1% increase potentially up for grabs. Royalty Pharma will also buy $10 million of Cytokinetics shares, the companies said.

Cytokinetics CYTK, -0.48% plans to invest $40 million of the proceeds into the phase 3 development of omecamtiv mecarbil.

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