Cytokinetics (CYTK) likely has the upper hand in its patent dispute with Bristol-Myers Squibb (BMY) related to a patent for methods of treatment with cardiac myosin inhibitors, or CMIs, RBC Capital Markets said in a note Thursday.

The investment firm said it hosted a call with a legal expert on the declaratory judgment filing by Cytokinetics against a Bristol-Myers Squibb patent for methods of treatment with CMIs. The investment firm added that the preemptive declaratory judgment seeks to prevent potential infringement claims by Bristol-Myers Squibb.

RBC said its legal expert believes Cytokinetics has the upper hand given the way aficamten's label is written, which could allow the company freedom to operate, although Bristol-Myers Squibb could seek to have the case dismissed for lack of standing.

RBC said, however, that a resolution for the case may be "years away" and investors should focus on Cytokinetics' near-term dynamics.

The investment firm said it remains bullish on the launch of Cytokinetics' aficamten, which may be on track to reach $135 million in 2026 sales, and it expects Cytokinetics' shares to start better reflecting the commercial opportunity as well as a future label expansion.

RBC has an outperform rating on Cytokinetics and a $112 price target.

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