05:00 PM EDT, 05/22/2024 (MT Newswires) -- Cytokinetics ( CYTK ) disclosed a collaboration late Wednesday under which Royalty Pharma ( RPRX ) will provide capital totaling up to $575 million to support the commercialization of aficamten and advance its expanding cardiovascular pipeline.

The aim here is also to diversify access to capital as the company advances its muscle biology-directed specialty cardiology business.

As part of commercial launch funding, Cytokinetics ( CYTK ) will receive $50 million and will be eligible for an additional $175 million within 12 months of the aficamten approval. The capital will be repayable over 10 years in quarterly installments.

Cytokinetics ( CYTK ) will receive $100 million in upfront capital to fund a confirmatory phase 3 clinical trial of omecamtiv mecarbil in patients with heart failure and reduced ejection fraction. If the trial is not successful or does not lead to approval from the US Food and Drug Administration, Cytokinetics ( CYTK ) will repay up to $237.5 million over 18 or 22 quarters, in fixed quarterly payments.

Cytokinetics ( CYTK ) to receive $50 million in upfront capital to fund a proof-of-concept phase 2 trial for CK-586 in patients with heart failure and preserved ejection fraction. Royalty will have the option to invest another $150 million in phase 3 trial. Royalty will be eligible for $150 million milestone payment approval and a 4.5% royalty on annual sales

Royalty Pharma ( RPRX ) will also purchase $50 million of Cytokinetics' ( CYTK ) common stock in a private placement, concurrent with Cytokinetics' ( CYTK ) public offering.

Further, Royalty Pharma's ( RPRX ) royalty on aficamten has been restructured to now receive 4.5% of up to $5 billion of annual sales of aficamten and 1% above $5 billion, compared with the prior 4.5% of up to $1 billion of sales and 3.5% after that.

Shares of Cytokinetics ( CYTK ) dropped 12% in after-hours activity.

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