Cytokinetics Launches Myqorzo Amid High Stakes and Financial Pressures

What happened

Cytokinetics has initiated the U.S. launch of Myqorzo following approvals in the U.S., China, and Europe, with first prescriptions dispensed, marking its entry into the commercial phase. The company reported approximately $1.2 billion in cash as of December 2025, providing near-term runway but against a backdrop of negative equity and persistent cash burn highlighted in the DeepValue report. Despite the launch, Myqorzo faces intense competition from Bristol Myers' entrenched Camzyos, which has over 12,500 U.S. patients and reduced monitoring burdens after label updates, narrowing Myqorzo's differentiation. Upcoming catalysts include the ACACIA-HCM trial results in Q2 2026, critical for expanding into non-obstructive HCM and validating the broader cardiomyopathy platform. The current valuation around $63 per share embeds aggressive assumptions about market share capture, with the DeepValue report indicating a skewed risk-reward favoring downside if early sales or trial outcomes disappoint.

Implication

The launch of Myqorzo must demonstrate rapid prescription growth to justify Cytokinetics' valuation and offset its high cash burn, with initial sales data in 2026 serving as a key indicator of commercial viability. Competition with Camzyos remains a formidable hurdle, and any signs of slow adoption or payer resistance could quickly erode growth projections and investor confidence. The ACACIA-HCM results in Q2 2026 represent a binary event; success could support expansion, but failure would eliminate a major growth driver and exacerbate financial strain. Cytokinetics' capital structure, with negative equity and heavy royalty obligations, means underperformance might force dilutive financings, further depressing shareholder value. Given crowded bullish positioning and insider selling, a cautious approach is warranted until concrete evidence of commercial traction and pipeline success emerges.

Thesis delta

The news confirms Myqorzo's launch timeline and provides a cash update, but does not materially alter the investment thesis, which remains dependent on unproven commercial execution and ACACIA-HCM outcomes. Risks are still skewed to the downside at current prices, with the base case implying limited upside and the bear case highlighting potential for significant capital impairment. Maintain a reduce-or-avoid stance until clearer data on sales ramp and trial results validates the aggressive assumptions embedded in the valuation.