Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Tuesday, Cantor Fitzgerald reiterated their Overweight rating on shares of Cidara Therapeutics (NASDAQ:CDTX), highlighting the potential of the company’s lead asset, CD388, as it approaches the release of pivotal Phase 2b study data. With analyst price targets ranging from $33 to $46, significantly above the current trading price of $18.74, InvestingPro data suggests the stock could have substantial upside potential despite its current market capitalization of $205 million. The study, focusing on seasonal influenza prophylaxis, is anticipated to deliver top-line results in June. Analysts at Cantor Fitzgerald expressed optimism about the trial, suggesting it could offer strong proof-of-concept in what is seen as a multi-billion-dollar commercial market.
Cidara Therapeutics’ management team recently discussed the unique aspects of CD388, which includes zanamivir—a powerful antiviral sold by GSK under the brand name Relenza—fused to an Fc domain. This innovative design is intended to prolong the drug’s half-life, potentially offering protection throughout the entire flu season with just a single subcutaneous injection. This aspect of CD388 could position it favorably in the market, as current flu prophylactics typically require more frequent dosing.
The company’s approach to CD388 is based on the compound’s ability to provide effective protection against influenza, as demonstrated in preclinical and human challenge studies. The upcoming Phase 2b seasonal prophylaxis study’s findings are eagerly awaited by investors and could significantly influence perceptions of Cidara Therapeutics’ market position and future potential.
While some investors are already paying close attention to Cidara’s progress, Cantor Fitzgerald’s commentary indicates that the broader investment community may not be fully aware of the implications of the forthcoming study results. InvestingPro data reveals the stock has already gained over 84% in the past six months, with a notable 9.5% increase just last week. The company maintains a strong liquidity position, holding more cash than debt on its balance sheet. The firm’s reiteration of the Overweight rating suggests confidence in the potential of CD388 to make a substantial impact in the treatment and prevention of influenza.
Cidara Therapeutics’ stock performance in the coming months will likely be closely tied to the outcomes of the Phase 2b study, with positive results potentially validating the company’s strategic focus and reinforcing its standing in the competitive pharmaceutical landscape. With the next earnings report scheduled for May 9th, investors seeking deeper insights can access additional financial metrics and 8 more exclusive ProTips through InvestingPro, including detailed analysis of the company’s financial health and growth potential.
In other recent news, Cidara Therapeutics reported a wider fourth-quarter loss, with a net loss of $52.3 million compared to $3.2 million in the same period last year. This was attributed to increased research and development expenses, primarily due to the Phase 2b NAVIGATE trial for their influenza drug candidate, CD388. The company did not report any collaboration revenue for the quarter, a decrease from $2.8 million in the previous year. Cidara ended 2024 with $196.2 million in cash and equivalents, supported by recent financing activities, including a $240.0 million raise in April and an additional $105.0 million in November.
In analyst updates, Citizens JMP initiated coverage on Cidara with a Market Outperform rating, citing the potential of CD388 for influenza prevention. The analyst emphasized the innovative nature of Cidara’s drug-Fc conjugates and the substantial market opportunity for immunocompromised individuals. Meanwhile, H.C. Wainwright raised its price target for Cidara to $35 from $24, maintaining a Buy rating, following the company’s announcement of an anticipated early analysis of the Phase 2b NAVIGATE study. The study, which achieved full enrollment with at least 5,000 participants, is designed to evaluate CD388 against a placebo during the influenza season. Positive results from this study could lead to a Phase 3 trial earlier than previously projected.
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