Cidara Therapeutics provides update on status of CD388 program

Cidara Therapeutics (CDTX) provided an update on the status of its ongoing CD388 program for prevention of influenza A and B, which is the subject of an exclusive worldwide license and collaboration agreement with Janssen Pharmaceuticals, one of the Janssen Pharmaceutical Companies of Johnson & Johnson (JNJ). As part of a recent prioritization of its R&D business, Janssen has announced its intention to discontinue internal development of the majority of its infectious disease pipeline, including JNJ-0953. However, at this time, Janssen has not informed Cidara of any intention to terminate the agreement between the two parties. Cidara continues to work in collaboration with Janssen to complete the Phase 1 and Phase 2a clinical trials and will be reimbursed for all ongoing development activities by Janssen as per the Janssen Collaboration Agreement. Under the Janssen Collaboration Agreement, within 90 days after Cidara delivers the complete CD388 Phase 2a data package to Janssen, Janssen is required to notify Cidara whether it will proceed with clinical development. If Janssen delivers an Election to Proceed, it is obligated at its sole expense to diligently continue development and commercialization either itself or through a third party to whom it sublicenses or assigns the rights. If Janssen sublicenses or assigns the rights to a third party, then all terms under the current Janssen Collaboration Agreement will survive without modification. Should Janssen not provide an Election to Proceed within the Election Period, Cidara would have the right to terminate the agreement and retain the CD388 program, including all data and materials funded by Janssen’s investment in the program.