Cidara Therapeutics Stock Surges 42% as Enrollment Milestone Achieved

Cidara Therapeutics Inc. (NASDAQ: CDTX) experienced a significant surge in its stock price on November 10, 2023, as shares rose by 42.23% during after-hours trading, closing at $150.75. This upward momentum is attributed to the company’s recent announcements regarding its ongoing clinical studies and strategic investments.

Investor Confidence Bolstered by Enrollment Achievement

The catalyst for this substantial jump in stock value was the announcement from CEO Jeffrey Stein that the ANCHOR study has exceeded 50% enrollment, aiming to recruit a total of 6,000 participants by December. According to a press release shared by the company on November 6, 2023, the Food and Drug Administration (FDA) has expanded the study’s scope to include healthy adults aged over 65, effectively broadening the potential patient pool in the U.S. from approximately 50 million to over 100 million. The interim analysis for this pivotal study is scheduled for the first quarter of 2026, and the study is currently open to participants from 150 sites across the Northern Hemisphere, including the United States and the United Kingdom.

Financial Backing and Strong Balance Sheet

Cidara’s recent performance has also been supported by significant financial backing. The company received a Breakthrough Therapy designation from the FDA after its Phase 2b NAVIGATE study successfully met all primary and secondary endpoints. Moreover, the Biomedical Advanced Research and Development Authority has awarded Cidara up to $339.2 million, which includes $58.1 million in base funding over 24 months to facilitate U.S. manufacturing onshoring.

As of September 30, 2023, Cidara reported a robust balance sheet with $476.5 million in cash and investments, a significant increase from $196.2 million at the end of 2022. Despite incurring $45.0 million in acquired in-process research and development (IPR&D) expenses related to the Janssen License Agreement, alongside $35.5 million in research and development costs, the company recorded a net loss of $83.2 million for the third quarter of 2023, a rise from $16.0 million in the same quarter of the previous year.

The stock’s performance over the past year has been remarkable, with a staggering 631.98% increase, including gains of 448.9% over the last six months and 288.2% year-to-date. Following this rapid ascent, Cidara’s stock has seen a modest decline of 4.2% in the past month. Throughout the year, the stock has traded within a range of $13.82 to $121.21 and currently holds a market capitalization of $3.33 billion.

The closing stock price on Thursday was $105.99, reflecting a decrease of $1.13, or 1.05%, according to data from Benzinga Pro. Cidara’s stock momentum remains strong, with rankings in the 99th percentile according to Benzinga’s Edge Stock Rankings, indicating a positive price trend across all time frames.

As Cidara continues to advance its clinical studies and secure substantial funding, investor confidence appears to be solid, positioning the company for potentially significant growth in the biotech sector.