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Biotech with Impressive Relative Strength and Call Buyer Flow

Biotech with Impressive Relative Strength and Call Buyer Flow

by | Jun 21, 2022 | Open Interest Alerts

Cytokinetics (CYTK) highlighted this morning to members with a buyer of 1000 July $45 calls $1.90 and has the 1000 Jan. $20 calls bought 12/27/21 in open interest holding for more. CYTK an impressive chart breaking out of a weekly value range with bullish moving average slopes and outperforming Biotech peers.

CYTK recently announced that the PDUFA for myosin activator omecamtiv mecarbil (OM) for the treatment of heart failure with reduced ejection fraction (HFrEF) has extended by three months to February 28, 2023. CYTK believes recently approved Camzyos from BMY opens the door for the drug class and views afi as potentially next in class in the space. CYTK is a late-stage US biopharma focused on developing novel therapeutics based on sarcomere (muscle cell) biology, making it unique in its approach. CYTK’s current primary focus is cardiovascular (CV) disease, and lead asset omecamtiv mecarbil (OM), which is partnered with Amgen (AMGN). 

Biotech M&A has been heating up and after scoring big last week in SeaGen (SGEN) that showed similar characteristics of relative strength in price action and unusual upside call buying, CYTK could be a candidate. It is seen as a M&A candidate with the potential for aficamten in oHCM in light of past consolidation in this disease area combined with the potentially large TAM in the disease, Goldman notes a $71 M&A value. Amgen (AMGN) would make sense as a logical buyer, its partner.