Novartis said to have backed away from a deal for Cytokinetics

TBE/iStock Editorial via Getty Images Cytokinetics ( NASDAQ: CYTK ) shares fell on Thursday after The Wall Street Journal reported that Novartis ( NYSE: NVS ) ( OTCPK:NVSEF ) had backed away from its plans to acquire the South San Francisco, CA based biotech. After pursuing the biotech for months, the Swiss pharma giant ended its overtures “sometime in the past day or two,” according to people familiar with the matter.

The shares of the late stage biopharma company surged Monday after the Journal reported that Novartis ( OTCPK:NVSEF ) was closing on a deal to acquire it. However, the rally cooled after CEO Vasant Narasimhan said the company would seek bolt on acquisitions and declined to comment on a potential deal with CYTK.

With a sale process for Cytokinetics ( CYTK ) already underway, Novartis ( NVS ) or another acquirer could reenter the bidding scene, or the company would target a capital raise or a similar transaction. More on Cytokinetics Cytokinetics: Clear Win For Aficamten In SEQUOIA HCM Phase 3 Trial (Upgrade) Cytokinetics: Buyout Rumors Ahead Of The Key Phase 3 Readout Of Aficamten Cytokinetics, Incorporated (CYTK) Q3 2023 Earnings Call Transcript Cytokinetics plunges amid no deal announcement as JPMorgan conf set to end Cytokinetics drops as Novartis CEO says the company is focused on bolt on deals.