CDTX - Cidara Therapeutics: Now Well-Funded To Advance Its Cloudbreak Platform

2024-04-26 18:01:25 ET

Summary

• Cidara Therapeutics, Inc. passed rezafungin rights to Mundipharma allowing reallocation of resources to the oncology Cloudbreak platform.
• Following a considerable private placement and re-acquisition of CD388 from Janssen, CDTX is well funded to start and complete a ph2b trial.
• Cidara Therapeutics no longer expects any milestone/royalty revenue but will be able to raise funds from a much stronger position following a positive ph2b trial for CD388.

Thesis update

In my prior coverage , I recommended buying Cidara Therapeutics, Inc. ( CDTX ) following the validation of CD388 potential by Janssen's decision to keep CD388 rights. In that coverage, I made it clear that "I see CDTX as a long-term investment" and warned about expected volatility considering the low cash runway. Short/medium term, my thesis was based on CDTX funding coming from milestones, potential new partnerships, and further progress in CD388 development (which would trigger further milestone payments). Meanwhile, in the absence of news on the fate of CD388 and considering dwindling cash reserves and delisting risk, CDTX stock has not been performing well....

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