Cidara Therapeutics shares surge 30% after reacquiring flu treatment

By Ben Glickman

Shares of Cidara Therapeutics (CDTX) rose sharply after the company announced a reshuffling of its portfolio of drug candidates.

The stock was up 33% to $16.43 in after-hours trading, following a 20% jump in Wednesday's regular session. Shares are up roughly 15-fold since the start of the year.

The biotechnology company said that it was divesting a candidiasis treatment to its partner and was buying back the license to its potential influenza-prevention treatment.

Cidara expects the divestiture of rezafungin, sold under brand name Rezzayo, to save the company about $128 million over the life of the patent, more than half of which is clinical development costs.

Meanwhile, the company bought back the exclusive rights to its immunotherapy CD388, which is being developed to prevent all strains of the flu, from Johnson & Johnson's Janssen Pharmaceuticals.

The company said it would develop CD388 using the proceeds from a $240 million private stock placement, which was made concurrent with the deal with Janssen.

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04-24-24 1919ET

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