Boston, MA 02/20/2014 (wallstreetpr) – Cytokinetics, Inc. (NASDAQ:CYTK) will carry out an initial public offering expected to raise a total of $35 million at the back of 4.3 million shares of its common stock that is expected to go public at a share price of $8. Cytokinetics has also granted a 30 day period for any underwriters who would wish to purchase an addition 656,250 shares of its common stock.
The offering is expected to run till February 25, 2014 with Cytokinetics selling all the shares subject to customary closing conditions. The net proceeds from the offering will be used for research development and other corporate purposes inclusive of working capital. Cowen and Company LLC will act as the sole book running manager for the offering
Cytokinetics rises after solid Q4 earnings
Cytokinetics, Inc. (NASDAQ:CYTK) impressive fourth quarter results made the company stock rise in the market by 26.09% as earnings per share came in at 21 cents beating consensus estimates of 20 cents loss. Total revenue for the quarter was also up from $2.2 million reported a year ago to a high of $24.3 million heavily bolstered by license revenues from partners Amgen Inc. and Astellas Pharma Inc. The company’s total revenue for the quarter also beat consensus estimates of $11 million.
Cytokinetics, Inc. (NASDAQ:CYTK) is essentially picking itself in the market considering it registered a full year net loss of $1.24 per share that was better than consensus estimates of total losses of $1.67 and a year ago loss of $2.30. Full year revenue increased by 305.5% to clock highs of $30.6 million beating consensus estimates of $25 million.
Cytokinetics, Inc. (NASDAQ:CYTK)’s Research and development expenses for the quarter was up by 40.2% coming in at $13.8 million primarily impacted by increased investment in pipeline. General and administrative expenses also soared during the quarter by 7.3% to highs of 4.1 million as a result of increased costs in corporate development planning.
Cytokinetics financial outlook
Cytokinetics, Inc. (NASDAQ:CYTK) expects its cash revenue for 2014 fiscal year to be in the range of $19 million to 21 million although the guidance does not include differedrevenues approximated to be about $10 million and stock compensation expenses of $3 million. The company also expects R&D expenses to be in the range of $50-$53 million with cash G&A expenses of $15 -$17 million.
