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Expert Financial Analysis and Reporting

Today’s Price Action in Cytokinetics (CYTK) and Cryoport (CYRX)

There has been strong price action today in both Cryoport and Cytokinetics so I thought I would make a brief comment on each.

At the time of this writing, the intraday price of CYTK is up $1.34 to $9.86 and since March 7, 2019 it is up 64% from $6.02. On March 7, 2019 CYTK announced that the results of reldesemtiv in the FORTITUDE-ALS trial would be discussed in a platform presentation at the American Academy of Neurology 71st Annual Meeting in Philadelphia on Sunday, May 5, 2019. The Company is still in the process of collecting the data and does not know the outcome of the trial, but it expects for the results to be analyzed and topline data presented in the days before the May 5 presentation. I believe that there is a reasonable chance that the study will be positive. Please refer to my March 7, 2019 report for more detail. 

Today the Data Monitoring Committee announced that it had completed an interim analysis of the GALACTIC-HF trial of omecamtiv in heart failure. It found no safety issues. It also looked at the data to determine if the interim results indicated that it would be futile to continue the trial. Encouragingly, the DMC recommended continuation without any change in trial design. The next interim look is likely in 2H, 2020.

The intraday price increase for Cryoport of $0.84 at the time of this writing builds on good momentum since the release of strong 4Q, 2018 results that were reported after the close on March 7, 2019. Since then the stock has increased 19% to the current intraday price of $12.77. Today, Jefferies came out with new coverage and a buy with a price target of $16. I am encouraged because the Jefferies analyst is a life sciences analyst. Unfortunately, coverage of the Company has come largely from analysts who have expertise in logistics, e.g. railroads and FedEx type companies. While I am sure they are good analysts, they couldn’t appreciate what really drives the Company. The Jefferies analyst seems to understand as he said that CYRX is a pure-play on the emerging cell & gene therapy market. I believe that as investors come to understand this that it will provide strong support for the stock. Having the right analysts covering the company is central to this process.

Categorized as Smith On Stocks Blog


  1. thank you


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