CDTX up 65% @ 2.80 > Cidara Therapeutics's Stock Rockets After Commercialization Deal With A Potential Value Of Up To $568 Million -- MarketWatch
6:41 am ET September 3, 2019 (MarketWatch)
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Shares of Cidara Therapeutics Inc. (CDTX) rocketed 67% in active premarket trading Tuesday, after the biotechnology company announced a partnership with Mundipharma with a total potential value of $568 million to Cidara. Under terms of the agreement, which follows the completion of its phase 2 trial of Rezafungin for the treatment of fungal infections, Cidara will receive a $30 million upfront payment and Mundipharma will make a $9 million equity investment in Cidara, while Cidara will grant Mundiphama exclusive commercialization rights to rezafungin outside of the U.S. and Japan. Cidara will also receive $42 million in near-term funding to support phase 3 trials, and Cidara will be eligible to receive development, regulatory and commercial milestone payments. "This is a transformational collaboration for Cidara, and we look forward to working closely with our colleagues at Mundipharma, a highly successful, profitable company with a commercial presence spanning 120 markets worldwide and annual sales exceeding EUR2 billion," said Cidara Chief Executive Jeffrey Stein. Cidara's stock has tumbled 28.5% year to date through Friday, while the iShares Nadsaq Biotechnology ETF (IBB) has gained 6.7% and the S&P 500 has advanced 16.7%.
-Tomi Kilgore
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