This Cytokinetics Director Sold 5,000 Shares in November. Is It Time to Dump the Biopharmaceutical Stock?

B. Lynne Parshall, Director at Cytokinetics, Incorporated (NASDAQ:CYTK), reported the sale of 5,000 shares in an open-market transaction valued at ~$323,650 on November 19, 2025; direct ownership following the sale stands at 22,933 shares, according to the SEC Form 4 filing.

Transaction summary

Metric	Value
Shares sold	5,000
Transaction value	~$323,650
Post-transaction shares	22,933
Post-transaction value (direct ownership)	~$1,485,800

Transaction value based on SEC Form 4 reported price ($64.73); post-transaction value based on Nov. 19, 2025 market close ($64.79).

Key questions

• How significant was this sale relative to B. Lynne Parshall's remaining direct holdings?
  The disposition represented 17.9% of direct ownership immediately prior to the transaction, with post-sale holdings at 22,933 shares.
• How does this transaction compare to the insider's historical selling pattern?
  The sale of 5,000 shares matches the historical median sale size for B. Lynne Parshall, though the percentage of holdings sold per transaction has increased as the share base has declined, reflecting reduced available capacity rather than increased trade size.
• What is the current value of the insider's remaining direct position?
  Based on the November 19, 2025 closing price of $64.79, the post-transaction direct holding is valued at approximately $1.49 million.
• How does the transaction value relate to Cytokinetics, Incorporated's one-year stock performance?
  The ~$323,650 sale occurred with shares priced at $64.73, following a 27.36% total return for the stock over the preceding 12 months as of the transaction date.

Company overview

Metric	Value
Market capitalization	$7.79 billion
Revenue (TTM)	$87.21 million
Net income (TTM)	-$751.94 million
1-year price change	27.36%

Note: 1-year performance calculated using November 19th, 2025 as the reference date.

Company snapshot

• Cytokinetics develops small molecule drug candidates targeting muscle function, with a pipeline including omecamtiv mecarbil (cardiac myosin activator), reldesemtiv (skeletal muscle troponin activator), aficamten (cardiac myosin inhibitor), and other early-stage assets.
• The company operates a late-stage biopharmaceutical model focused on drug discovery, clinical development, and future commercialization, generating revenue primarily from strategic alliances and milestone payments.
• It targets healthcare providers and patients affected by heart failure, neuromuscular, and rare muscle diseases, with a focus on the U.S. and global biopharmaceutical markets.

Cytokinetics is a late-stage biotechnology company specializing in muscle biology therapeutics for serious cardiovascular and neuromuscular diseases. The company leverages a differentiated pipeline of muscle activators and inhibitors, with several candidates in phase 3 clinical trials. Its strategic focus on innovation in muscle contractility positions it as a potential leader in addressing unmet medical needs in heart failure and related conditions.

Foolish take

Parshall's 5,000-share disposition came after a sizable run-up in the biopharmaceutical company's share price. The stock has returned around 27% over the last year, beating the S&P 500's 13% gain.

The company continues to make news, recently winning a $7.5 million milestone payment from Sanofi after China's National Medical Products Administration approved Myqorzo for the treatment of adults with obstructive hypertrophic cardiomyopathy. Cytokinetics could receive up to $142.5 million more, plus royalties, from the agreement with Sanofi, which holds exclusive rights to develop and commercialize the drug in China.

It also faces a Dec. 26 decision from the Food and Drug Administration for the approval of aficamten, for patients with obstructive hypertrophic cardiomyopathy, or oHCM. It would be the company's first FDA approval. This last point comes with some controversy, as the company faces a class-action lawsuit alleging Cytokinetics made "false and misleading statements to the market" regarding the approval timeline for aficamten.

The stock is likely to be volatile as this news and approval plays out, making a stock in an inherently risky sector even riskier.

Glossary

Insider transaction: A trade of company securities by an executive, director, or significant shareholder, reported to regulators.
Open-market transaction: The buying or selling of securities on a public exchange, not through private or pre-arranged deals.
Direct ownership: Shares held personally by an insider, not through trusts, funds, or indirect arrangements.
Form 4: A mandatory SEC filing disclosing insider trades in a company's securities.
Milestone payments: Payments received when specific research, development, or commercial goals are achieved, often in biopharma partnerships.
Phase III clinical trials: Late-stage studies testing a drug's safety and effectiveness in large patient groups before regulatory approval.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Biopharmaceutical: A sector focused on developing drugs using biological processes or molecules, often for complex diseases.
Cardiac myosin activator: A drug that increases heart muscle contraction strength by targeting the cardiac myosin protein.
Skeletal muscle troponin activator: A drug designed to enhance skeletal muscle contraction by acting on the troponin protein.
Cardiac myosin inhibitor: A drug that reduces heart muscle contraction by inhibiting the cardiac myosin protein.
TTM: The 12-month period ending with the most recent quarterly report.

Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cytokinetics. The Motley Fool has a disclosure policy.