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Cytokinetics, Inc. (CYTK), Exelixis, Inc. (EXEL): Three Small Cap Biotech Stocks with Great Potential

Small cap stocks are a bit riskier, but offer more growth than the stable large cap ones. The biotech sector in U.S. has a number of small cap stocks that are thriving, developing their product portfolios. Out of all these, some have exceptional potential of growth. I took a peak into the current business scenario of one of them and was impressed enough to share it with you. My pick is Cytokinetics, Inc. (NASDAQ:CYTK), and I will analyze it with its peers, which are also performing quite well.

Cytokinetics, Inc. (NASDAQ:CYTK)

Cytokinetics, Inc. (NASDAQ:CYTK)

Cytokinetics, Inc. (NASDAQ:CYTK) develops drugs for patients suffering from chronic cardiac failure, skeletal muscle wasting or weakness and amyotrophic lateral sclerosis (ALS). The company’s drug development in the chronic cardiac segment is its gem. This is mainly because every year approximately 700,000 people in the U.S. suffer heart attacks, out of which 190,000 have already suffered an attack before. Thus, there is a huge demand for drugs related to heart ailments.

For cardiac muscle damage, Cytokinetics, Inc. (NASDAQ:CYTK) is collaborating with Amgen to work on a drug called Omecamtiv Mecarbil. This has helped the company as most of the expenses on clinical trials and commercialization are paid by Amgen. Cytokinetics, Inc. (NASDAQ:CYTK), on the other hand, will enjoy double figure royalties for the drug. Omecamtiv Macarbil is in phase II clinical trials and helps patients to achieve cardiac muscle recovery with a laboring heart after a cardiac event.

Cytokinetics, Inc. (NASDAQ:CYTK) is also working on two other drugs, i.e. Tirasemtiv and CK-2127107 for related skeletal muscle ailments like muscle aging, wasting or fatigue and ALS. Tirasemtiv is in Phase II trial (BENEFIT-ALS) for ALS whereas CK-2127107 is in the Phase I trials stage for safety and tolerability.

The company is not producing large amount of drugs, instead it is catering to the unmet medical needs of the people. Its BENEFIT-ALS study is currently being conducted in 67 different study centers in 8 countries. This tells me that after Omecativ Mecarbil, the company’s next big revenue driver would be Tirasemtiv.


Another small cap company in the industry is Exelixis, Inc. (NASDAQ:EXEL), which is working on cancer cures, is under the radar for its successful lead compound, cabozantinib. The company got its first FDA approval for marketing its drug called Cometriq (cabozantinib), which treats progressive, metastatic medullary thyroid cancer (MTC). MTC is a rare disease that is quite difficult to treat. Approximately 2,250 people in the U.S. suffer from MTC, and about 500 to 700 patients reach the advanced stage of MTC each year.

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