Cidara Therapeutics Stock Price Increased Over 5% Pre-Market: Why It Happened

By Amit Chowdhry ● Apr 5, 2021
  • The stock price of Cidara Therapeutics, Inc. (Nasdaq: CDTX) increased by over 5% pre-market. This is why it happened.

The stock price of Cidara Therapeutics, Inc. (Nasdaq: CDTX) – a biotechnology company developing long-acting therapeutics designed to transform the standard of care for patients facing serious fungal or viral infections – increased by over 5% pre-market. Investors appear to be responding to the company announcing that it has entered into an exclusive worldwide license and collaboration agreement with Janssen Pharmaceuticals, one of the Janssen Pharmaceutical Companies of Johnson & Johnson, to develop and commercialize Cidara’s Cloudbreak antiviral conjugates (AVCs) for the prevention and treatment of seasonal and pandemic influenza. This deal was facilitated by Johnson & Johnson Innovation.

Under the partnership, Cidara will be responsible for the development and manufacturing of the first influenza AVC, CD388, into the clinic and through Phase 2 clinical development. And Janssen will be responsible for late-stage development, manufacturing, registration and global commercialization. 

Cidara is going to receive an upfront payment of $27 million and Janssen will fund all future research, development, manufacturing and commercialization for CD388. And in addition to the upfront payment, Cidara is eligible to receive up to an aggregate of $753 million in budgeted R&D funding and in development, regulatory and commercial milestones, plus tiered royalties on worldwide sales in the mid to high single digits. Cidara has the option to co-detail CD388 in the U.S.

CD388 is a long-acting antiviral immunotherapy designed for delivering universal protection for an entire influenza season. And by targeting a highly conserved region on the influenza virus, CD388 has the potential to protect individuals from all influenza strains, including seasonal and pandemic influenza A, influenza B and major clinically characterized drug resistant influenza strains. Plus CD388 retains its potent antiviral activity even in immunocompromised animal models of influenza infection and thus is expected to be clinically effective across all patient populations, regardless of immune status and circulating strains. Cidara is expecting to file an Investigational New Drug Application for CD388 with the U.S. Food and Drug Administration by the end of 2021.

KEY QUOTE:

“In the U.S. alone there are an estimated 100 million individuals who are at high risk for complications due to seasonal influenza, and each year there are up to 650,000 influenza deaths worldwide. This collaboration represents a significant advancement toward fulfilling our vision of providing universal, seasonal protection against all seasonal and pandemic strains of influenza. We believe Janssen, with its expertise in the development and commercialization of vaccines and therapies for viral respiratory diseases, is the ideal partner to rapidly advance CD388. Importantly, this agreement validates our Cloudbreak antiviral platform as we continue to advance our AVC programs in RSV, HIV and SARS-CoV-2.”

— Jeffrey Stein, Ph.D., president and chief executive officer of Cidara

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.