Cidara Therapeutics Reacquires Global Development And Commercial Rights To CD388 From Johnson & Johnson For A One Time Payment Of $85M; Announces Private Placement Financing Of $240M
Portfolio Pulse from Benzinga Newsdesk
Cidara Therapeutics reacquires global rights to CD388 from Johnson & Johnson for $85M and announces a $240M private placement financing led by RA Capital Management. The financing, with significant contributions from Bain Capital Life Sciences, BVF Partners, and Canaan Partners, will fund the Phase 2b trial of CD388, a universal preventative against influenza A and B. The reacquisition and financing are seen as transformational for Cidara, with CD388 positioned as a key asset in its pipeline.
April 24, 2024 | 8:47 pm
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POSITIVE IMPACT
Cidara Therapeutics reacquires CD388 rights from J&J and secures $240M in financing for its development, marking a significant advancement in its pipeline.
The reacquisition of CD388 and the substantial private placement financing are pivotal for Cidara, potentially accelerating the development of CD388 and enhancing its financial stability. This strategic move could significantly impact investor perception and the company's valuation in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEUTRAL IMPACT
Johnson & Johnson receives a one-time payment of $85M from Cidara Therapeutics for the rights to CD388, alongside eligibility for future milestone payments.
While the transaction provides Johnson & Johnson with an immediate cash inflow and potential future milestone payments, the impact on its overall financial performance is likely to be minimal given J&J's size and diversified portfolio. The deal's significance lies more in strategic realignment rather than immediate financial impact.
CONFIDENCE 85
IMPORTANCE 40
RELEVANCE 50