Cytokinetics Ends Cancer Deal with GlaxoSmithKline
From Associated Press (December 9, 2009)
NEW YORK--Cytokinetics Inc. said Wednesday it ended a deal with
GlaxoSmithKline PLC that had focused on developing a potential
cancer treatment, sending shares sharply lower in after-hours
trading.
Cytokinetics said, effective Feb. 28, all rights for the potential
cancer treatment GSK-923295 will revert back to the biotechnology
company. GlaxoSmithKline will still be responsible for completing
an ongoing Phase I clinical trial.
The decision is part of Cytokinetics' plan to focus its internal
research and development efforts on muscle function and related
therapies, the company said.
"In our industry, and especially in these challenging times, it is
increasingly important to remain focused and execute on a core
business strategy," said President and CEO Robert I. Blum, in a
statement.
"At Cytokinetics, we believe our best opportunities are rooted in
our multiple programs directed to the biology of muscle function,"
he said. "Today's announcement, combined with our company's
previously disclosed decisions to discontinue oncology research and
phase out related development activities and spending, is further
evidence of our commitment to this strategy."
Shares of Cytokinetics fell 33 cents, or 10.5 percent, to $2.80 in
aftermarket electronic trading. The stock had gained 7 cents to
close the regular session at $3.13.
Shares of GlaxoSmithKline fell 46 cents to close the regular
trading session at $41.59.
Posted: December 2009
