Cidara Therapeutics Stock Jumps on $339M BARDA Funding Deal
Government award will advance the company's non-vaccine influenza therapeutic, CD388, and onshore its manufacturing ahead of a potential pandemic.
Shares of Cidara Therapeutics (CDTX) surged Friday after the biotechnology firm announced it had from the Biomedical Advanced Research and Development Authority (BARDA), a division of the U.S. Department of Health and Human Services.
The significant government funding sent the company's stock climbing more than 5%, with trading volume running approximately 1.5 times its daily average. The agreement is designed to advance the development of Cidara’s promising non-vaccine influenza preventative, CD388, and establish a domestic manufacturing supply chain.
The multi-year deal provides an initial $58 million over 24 months. This first tranche will be used to transfer manufacturing of CD388 to the United States, fund a clinical trial for a higher-concentration formulation, and further study the therapeutic's effectiveness against various influenza strains. According to the company, these initial funds will help develop protocols for use in expanded patient populations.
The agreement also includes government options for up to an additional $281 million in funding. These funds, if exercised, would support expanded clinical studies and a potential Biologics License Application (BLA) submission to the U.S. Food and Drug Administration (FDA). This substantial backing from BARDA signals a strong vote of confidence in CD388 as a potential tool in .
“Both clinical and non-clinical data suggest that CD388 has the potential to be an effective non-vaccine preventative for both pandemic and seasonal influenza,” said Jeffrey Stein, Ph.D., president and CEO of Cidara, in a statement. The partnership with BARDA is a critical step to “expand commercial supply capacity and help ensure a U.S. supply of CD388 in the event of an influenza pandemic.”
For investors, the non-dilutive funding provides a major financial runway for Cidara, de-risking a significant portion of the development and manufacturing scale-up for its lead candidate. The move to onshore manufacturing is also a key component of the U.S. government's strategy to strengthen its domestic supply chain for critical medicines ahead of future public health crises. The following the announcement.