Cytokinetics (NasdaqGS:CYTK) Q4 2025 Earnings call February 24, 2026 04:30 PM ET Company ParticipantsAlex Xenakis - Research AssociateAndrew Callos - EVP and CCOCory Kasimov - Senior Managing DirectorDiane Weiser - SVP of Corporate Communications and Investor RelationsFady Malik - EVP of Research and DevelopmentJackie Plesset - SMid Cap Biotech Equity Research AssociateJames Condulis - VP of Biotechnology Equity ResearchJoe Pantginis - Managing Director Equity ResearchMaxwell Skor - VP of Biotech Equity Res ...

Cytokinetics (NasdaqGS:CYTK) Q4 2025 Earnings call February 24, 2026 04:30 PM ET Company ParticipantsAndrew Callos - EVP and CCOCory Kasimov - Senior Managing DirectorDiane Weiser - SVP of Corporate Communications and Investor RelationsFady Malik - EVP of Research and DevelopmentJackie Plesset - SMid Cap Biotech Equity Research AssociateJames Condulis - VP of Biotechnology Equity ResearchJoseph Pantginis - Managing Director Equity ResearchMaxwell Skor - VP of Biotech Equity ResearchMayank Mamtani - Senior M ...

Cytokinetics (NasdaqGS:CYTK) Q4 2025 Earnings call February 24, 2026 04:30 PM ET Speaker13Thank you for standing by. Welcome to the Cytokinetics Fourth Quarter 2025 Earnings Call. This call is being recorded. All participants are in a listen-only mode. After the speaker's remarks, we will open the call to questions. We will allow for one question per participant. If you would like to ask a question during this time, simply press star followed by 1 on your telephone keypad. If you'd like to withdraw your que ...

Core Insights - Royalty Pharma experienced a "landmark year" in 2025, achieving double-digit growth in both portfolio and royalty receipts, and internalizing its external manager to enhance governance and reduce costs [2][5][18] Financial Performance - The company reported a return on invested capital (ROIC) of 15.8% and return on equity (ROE) of 22.8% for 2025 [5] - Royalty receipts grew by 13% for the year and 17% in the fourth quarter, while portfolio receipts increased by 16% for the year and 18% in the fourth quarter [13] - The company ended 2025 with $619 million in cash, $9.2 billion in debt, and a leverage ratio of approximately 3x [3][15] Cost Management - Management expects to achieve $100 million in cost savings in 2026 due to the internalization of the external manager, aiming for an operating and professional cost ratio of 4%–5% over time [1][5] Strategic Transactions - In 2025, Royalty Pharma executed eight transactions with a total announced value of $4.7 billion, deploying $2.6 billion, marking its strongest year for synthetic royalties [4][6][7] - The company reviewed over 480 potential royalty transactions, resulting in 109 in-depth reviews and 35 proposals [6] 2026 Guidance - For 2026, management guided portfolio receipts of $3.275 billion to $3.425 billion, implying a royalty growth of approximately 3% to 8% [3][16] - The guidance reflects anticipated headwinds from product loss of exclusivity and the introduction of biosimilars [2][16] Pipeline and Future Catalysts - The company estimates combined peak sales of over $43 billion across 20 development-stage therapies, translating to more than $2.1 billion in peak annual royalties [11] - Upcoming pivotal readouts are expected over the next 24 months, including data from Revolution Medicines and Novartis [17] Capital Allocation - Royalty Pharma returned $1.7 billion to shareholders in 2025 through $1.2 billion in buybacks and over $500 million in dividends [14]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 18% in Q4 and 16% for the full year [25][5] - Return on invested capital was 15.8% and return on invested equity was 22.8% for the year, reflecting strong returns [28][5] - The company raised its guidance three times during the year, delivering results slightly above the top end of the most recent update [5][6] Business Line Data and Key Metrics Changes - The company deployed $2.6 billion in capital for the year, with 67% of investments in approved products and 33% in development stage therapies [18][31] - Synthetic royalty transactions reached a record value of $4.7 billion in 2025, exceeding traditional royalties for the first time [15][61] - Royalty receipts from key products like Voranigo, Trelstar, and Tremfya contributed significantly to growth, with minimal contribution from new acquisitions [27][25] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time, with a strong growth trajectory observed [9] - The average annual transaction value in the biopharma market nearly doubled over the past five years compared to the previous five years [9] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [5][6] - The company is excited about expanding its team and platform in China, indicating a strategic focus on international growth [36][73] - The internalization of the external manager is expected to enhance governance and reduce costs, aligning intellectual capital with the royalty portfolio [7][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting the potential for significant value creation from the development stage pipeline [11][12] - The company anticipates continued growth driven by the increasing recognition of biopharma royalties and the demand for capital in life sciences [10][11] - Future guidance for 2026 indicates expected growth in royalty receipts of 3%-8%, despite anticipated losses from exclusivity expirations [32][35] Other Important Information - The company returned $1.7 billion to shareholders through share repurchases and dividends, with a 7% increase in dividends announced for Q1 2026 [8][31] - The company expects to maintain a high level of cash conversion and efficiency, with operating costs projected to decrease significantly in 2026 [33][25] Q&A Session Summary Question: Sustainability of dividends and buybacks - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a current bias towards royalties [40][42] Question: Involvement in private companies and capital markets - Management is open to exploring high-quality assets in private companies and remains focused on investing in high-quality pharmaceutical products [44][42] Question: Performance of Alyftrek and patient conversion - Management noted that the conversion to Alyftrek has been gradual but consistent, with expectations for continued contributions from the cystic fibrosis franchise [48][52] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in the cardiovascular space, emphasizing a diverse approach to drug delivery formats [59][54] Question: Synthetic royalties trend - Management is optimistic about the growth of synthetic royalties, noting increased awareness and demand for this funding model [61][62] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class, with no change in outlook despite trial delays, awaiting results from Novartis [63][64] Question: Underappreciated assets in the portfolio - Management highlighted significant potential in the pipeline, with several products expected to deliver substantial value [70][69] Question: China opportunity and strategic focus - Management is excited about the growing opportunity in China, with plans to expand the team and platform in the region [73][72]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 16% for the year and royalty receipts growing 13% [5][24] - The company maintained a return on invested capital of 15.8% and a return on invested equity of 22.8% for the year [5][27] - The company returned $1.7 billion to shareholders, including $1.2 billion in share repurchases and over $500 million in dividends, with a 7% increase in dividends announced for the first quarter of 2026 [7][29] Business Line Data and Key Metrics Changes - The company reported strong performance from key products such as Voranigo, Trelstar, TREMFYA, and the cystic fibrosis franchise, contributing to the growth in royalty receipts [26] - In 2025, synthetic royalty transactions reached a record value of $4.7 billion, significantly higher than previous years, indicating a growing trend in this funding modality [14][15] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time in 2025, with a strong growth trajectory observed over the past five years [8] - The company noted that the demand for capital in life sciences is increasing, driven by the recognition of the benefits of biopharma royalties [9] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [5][10] - The company plans to continue expanding its capital deployment strategy, with a focus on high-quality assets and innovative therapies [12][16] - The internalization of the external manager is expected to enhance governance and reduce costs, further supporting the company's strategic goals [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to deliver consistent returns, even in uncertain market conditions [10][11] - The guidance for 2026 indicates expected growth in royalty receipts of 3%-8%, reflecting the strength of the existing portfolio [30][33] - Management highlighted the potential for significant value creation from the development stage pipeline, with multiple pivotal readouts expected in the near term [20][22] Other Important Information - The company achieved its five-year capital deployment target of $10 billion-$12 billion one year ahead of schedule [10][17] - The company has a robust pipeline of 20 development-stage therapies, with estimated combined peak sales of over $43 billion, translating to over $2.1 billion in peak annual royalties [22] Q&A Session Summary Question: Sustainability of dividends and buybacks in 2026 - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a focus on returning capital to shareholders while prioritizing royalty investments [38][40] Question: Involvement in private companies and capital markets - Management stated that they are open to investing in high-quality assets within private companies and are excited about the growth of opportunities in the sector [42] Question: Performance of ALYFTREK and patient conversion - Management noted that the conversion to ALYFTREK has been gradual but consistent, with expectations for continued contributions from the cystic fibrosis franchise [45][50] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in the cardiovascular and cardiometabolic markets, emphasizing a diversified approach to drug delivery formats [51][52] Question: Future of synthetic royalties - Management is optimistic about the continued growth of synthetic royalties, highlighting their advantages over traditional financing methods [56][59] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class and is awaiting results from ongoing trials, with no change in their positive outlook [60][61] Question: Underappreciated assets in the portfolio - Management highlighted the significant potential for value creation in the pipeline, with several products expected to deliver strong returns [66][68] Question: China opportunity and strategic focus - Management is excited about the growing opportunity in China and is looking to expand their team and platform in the region [69][71] Question: Teva's IL-15 asset and mid-stage investments - Management explained that the investment in Teva's asset was driven by the unmet need in the vitiligo market and emphasized their flexible investment structure [76][78] Question: Growth potential of VORANIGO - Management expressed strong confidence in the growth trajectory of VORANIGO, anticipating it to become a blockbuster product [79][80]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 16% for the year and royalty receipts growing 13% [4][23] - The company maintained a return on invested capital of 15.8% and a return on invested equity of 22.8% for the year [4][26] - The company returned $1.7 billion to shareholders, including $1.2 billion in share repurchases and over $500 million in dividends, with a 7% increase in dividends announced for Q1 2026 [6][28] Business Line Data and Key Metrics Changes - The cystic fibrosis franchise, along with products like Voranigo, Trelstar, and Tremfya, were key drivers of growth, contributing significantly to the overall increase in royalty receipts [25] - The company executed eight transactions for nine therapies in 2025, with an announced value of $4.7 billion, reflecting a disciplined approach to capital allocation [12][17] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time, with a strong growth trajectory observed over the past five years [8] - Synthetic royalty transactions set a new record in 2025, with a market value increase of about 50% compared to the previous year, totaling $4.7 billion [14][15] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [4][5] - The company is excited about expanding its team and platform in China, indicating a strategic focus on international growth opportunities [34][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting the potential for significant value creation from the development stage pipeline [10][22] - The company anticipates a growth rate of 3%-8% in royalty receipts for 2026, reflecting strong underlying momentum despite expected challenges from loss of exclusivity for certain products [29][33] Other Important Information - The internalization of the external manager in 2025 is expected to yield cost savings and improved governance [5][6] - The company achieved its five-year capital deployment target of $10 billion-$12 billion one year ahead of schedule [10][17] Q&A Session Summary Question: Sustainability of dividends and buybacks in 2026 - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a current bias towards royalties [39][41] Question: Involvement in private companies and capital markets - Management is open to exploring high-quality pharmaceutical products within private companies and sees growth opportunities regardless of market conditions [43][44] Question: Performance of Alyftrek and patient conversion - Management noted that the conversion to Alyftrek has been gradual but steady, with expectations for continued contributions from the cystic fibrosis franchise [47][51] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in general medicine and indicated a flexible approach to drug delivery formats based on patient needs [53][54] Question: Future of synthetic royalties - Management is optimistic about the growth of synthetic royalties, noting increased awareness and demand for this funding model [57][60] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class and is awaiting results from ongoing trials, emphasizing the potential for significant royalties [61][62] Question: Underappreciated assets in the portfolio - Management highlighted the significant potential for value creation in the pipeline, particularly in products like solanezumab and frexalimab [68][69] Question: China opportunity and transaction pipeline - Management is excited about the growing opportunity set in China and is actively pursuing expansion in that market [70][72]

Core Viewpoint - The Law Offices of Frank R. Cruz is investigating potential claims against the board of directors of Cytokinetics, Incorporated regarding possible breaches of fiduciary duties to shareholders [1] Group 1 - Cytokinetics disclosed that the FDA has extended the review period for its cardiac myosin inhibitor drug, aficamten, by three months [1]

Core Insights - Bayer AG's shares rose by 6.6% following Orion's projection that long-term annual net sales from Nubeqa could exceed €1 billion, based on collaborative scenario planning [1][7] Group 1: Product Performance and Strategic Priorities - Nubeqa, developed jointly by Bayer and Orion, is approved for various prostate cancer indications in the U.S. [2] - Bayer outlined its strategic priorities for the Pharmaceuticals Division at the J.P. Morgan Healthcare Conference, emphasizing the strong performance of Nubeqa and Kerendia, which are offsetting declining sales of Xarelto [3][4] - Bayer's stock surged 126% over the past year, significantly outperforming the industry growth of 22.7% [4] Group 2: Future Growth Drivers - Bayer is focusing on new drug launches such as Beyonttra, Lynkuet, and asundexian to drive future growth [5][7] - Kerendia received FDA approval for expanded use in heart failure patients, becoming the only non-steroidal mineralocorticoid receptor antagonist approved for chronic kidney disease associated with type 2 diabetes [8] - Asundexian, an investigational oral Factor XIa inhibitor, has shown promising results in late-stage studies and is viewed as a potential blockbuster opportunity [10] Group 3: Oncology and Women's Health Developments - Nubeqa continues to show strong global uptake, with additional phase III readouts expected to extend its use [14] - The FDA approved elinzanetant for menopause-related symptoms, marking a significant boost for Bayer's women's health portfolio [17] - Bayer's pipeline includes advancements in cell therapy and gene therapy, with ongoing developments in treatments for Parkinson's disease and late-onset Pompe disease [18][19] Group 4: Overall Business Outlook - Bayer's pharmaceutical business is entering a new growth phase, supported by key revenue drivers, multiple late-stage catalysts, and a robust pipeline [20]

Core Viewpoint - Truist Securities has raised its price target on Cytokinetics, Inc. to $84 from $70 while maintaining a Buy rating, reflecting updated forecasts following the regulatory approval of MYQORZO [1] Group 1: Regulatory Approval and Market Potential - The recent approval of MYQORZO, which features a differentiated label, positions it to become a significant revenue driver in obstructive hypertrophic cardiomyopathy (oHCM) [2] - Truist updated its model to estimate worldwide peak sales for MYQORZO in oHCM at $3.7 billion, slightly below the $3.8 billion consensus estimate [2] Group 2: Revenue Projections and Launch Expectations - A steady launch of MYQORZO is expected to begin in early 2026, with performance anticipated to be at least comparable to the launch trajectory of Camzyos [3] - Truist modeled fiscal 2026 aficamten revenue at $106 million, aligning with consensus expectations [3] - Looking ahead, the analyst projects worldwide peak adjusted total revenue of $4.6 billion in 2035, marginally above the $4.5 billion consensus estimate [3]