CDTX - Cidara off 27% despite FDA nod amid selloff in antifungal space
2023-03-23 15:43:20 ET
- Despite strong gains early this week, antifungal drug developers lost steam on Thursday even after Cidara Therapeutics ( NASDAQ: CDTX ) won FDA approval for its candidemia treatment Rezzayo.
- Shares of Cidara ( CDTX ) and its rival in antifungal space Scynexis ( NASDAQ: SCYX ) jumped on Monday amid concerns of a fast-spreading fungal infection caused by yeast species Candida auris in the U.S.
- Wednesday’s approval of Rezzayo for fungal disease candidemia and invasive candidiasis in adults has failed to reignite the interest, with Cidara ( CDTX ) and Scynexis ( SCYX ) trading more than 20% lower.
- Meanwhile, Cidara ( CDTX ) has not replicated its regulatory success on the financial front, reporting lower-than-expected financials for Q4 2022 on Thursday.
- H.C. Wainwright, which raised the price target on CDTX after an expert panel of the FDA endorsed Rezzayo, lowered its target to $6.00 from $6.50 while maintaining the Buy rating.
- Despite concerns about the market launch of Rezzayo, Seeking Alpha contributor Bret Jensen issued a Buy rating on CDTX in January, citing a potential $60M milestone the company could receive from its partner Melinta Therapeutics after the approval.
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Cidara off 27% despite FDA nod amid selloff in antifungal space