Cytokinetics (NASDAQ:CYTK) has signed an exclusive license agreement with Bayer to develop and market Aficamten as a treatment for hypertrophic cardiomyopathy or HCM in Japan.

So, Cytokinetics will receive an Upfront Payment of 50 million from Bayer. And Cytokinetics can potentially get an additional 90 million through various milestones leading up to the commercial launch, including 20 million in the near term. Also, there is potential for up to 490 million in commercial milestone payments based on the achievement of certain sales targets. As the result, Cytokinetics will receive additional revenue stream through tiered royalties on the sales of Aficamten in Japan.

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For information, milestone here refers to a business segment of Cytokinetics that make up to 46.5% of total revenue.

This is substantial for Cytokinetics remember that its 2023 revenue was $7.53 million only.

Bayer is now going to conduct Phase 3 clinical trials for obstructive HCM in Japan, while Cytokinetics will expand its ongoing ACACIA-HCM and CEDAR-HCM trials into Japan.

With Bayer's extensive experience in cardiovascular remedies meeting Cytokinetics's innovative drug development bring Aficamten to reach larger patient population Japan and this brings hope to Cytokinetics for profitability.

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