Cidara Therapeutics reacquires rights to CD388 from Johnson & Johnson for $85M

Cidara Therapeutics (CDTX) announced that it has entered into a definitive agreement with Johnson & Johnson (JNJ) to reacquire the exclusive global development and commercial rights to CD388, which is in development for the prevention of all strains of influenza A and B. Concurrent with the acquisition, Cidara closed a definitive agreement for the sale of preferred stock in a private placement led by RA Capital Management, with participation from Bain Capital Life Sciences, Biotech Value Fund and Canaan Partners. The private placement provides $240M in gross proceeds that will be used by Cidara to develop CD388 as a universal preventative against seasonal and pandemic influenza A and B, beginning with a Phase 2b clinical trial in the upcoming Northern Hemisphere influenza season. The proceeds from the private placement fund the upfront payment under the agreement with Johnson & Johnson and are expected to provide runway beyond topline data from CD388’s Phase 2b trial. CD388 is a long-acting antiviral investigational drug invented and developed by Cidara that became the subject of an exclusive worldwide license and collaboration agreement established with Johnson & Johnson in April 2021. In September 2023, Johnson & Johnson delivered to Cidara an Election to Proceed Notice and associated milestone payment for CD388 before beginning a process to transfer its rights and obligations under the agreement to another entity. In connection with the private placement, Laura Tadvalkar, managing director at RA Capital Management, Ryan Spencer, and James Merson have been appointed to Cidara’s board of directors, while David Gollaher and Timothy Franson will be stepping down. All responsibility for future development, manufacturing, and commercialization activities of CD388 will be assumed by Cidara. In exchange for reacquiring the exclusive global development and commercial rights to CD388, Johnson & Johnson has received from Cidara a one-time upfront payment of $85M and is eligible to receive potential additional development, regulatory, and commercial milestone payments.