JMP maintains Cidara stock with $47 target, upbeat on flu drug

Published 02/06/2025, 09:58
JMP maintains Cidara stock with $47 target, upbeat on flu drug

On Monday, JMP Securities sustained its Market Outperform rating and $47.00 price target for Cidara Therapeutics (NASDAQ:CDTX) stock, significantly above the current trading price of $21.68. According to InvestingPro data, analyst targets range from $35 to $50, reflecting strong confidence in the company’s potential despite recent stock volatility. The firm’s optimism is rooted in the potential of Cidara’s flu therapeutic candidate, CD388. JMP analysts highlighted the upcoming Phase 2b results for the once-per-season prophylactic antiviral, which are anticipated by the end of this month. The confidence in the drug’s prospects is supported by existing preclinical and clinical challenge efficacy data.

JMP analysts are closely monitoring developments in the field of flu therapeutics and preventatives. They referenced recent publications by Professor Krammer at Mt. Sinai, who is recognized for his work on broadly active anti-neuraminidase antibodies and DNA immunotherapies, such as those developed by Inovio Pharmaceuticals (NASDAQ:INO). JMP is keen to gather Professor Krammer’s insights on various anti-flu agents, including vaccines and antibodies, and specifically on Cidara’s CD388. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 3.87, though it’s currently experiencing rapid cash burn as it advances its clinical programs.

The analysis also considers the broader context of flu seasons, including the 2024-2025 season, prior and future seasons, and the H5N1 strain. JMP’s anticipation for Cidara’s success is not just limited to the upcoming Phase 2b results but also encompasses the drug’s potential impact on future flu seasons.

JMP has scheduled a call on Wednesday, June 4 at 1:15 p.m. EST to discuss these topics further. The firm has invited interested parties to join the call and submit any questions they might have for Professor Krammer. This engagement signifies JMP’s proactive approach in evaluating the therapeutic’s prospects and informing interested stakeholders.

Cidara Therapeutics is working towards introducing a novel antiviral that could simplify flu prevention by reducing the frequency of dosing to just once per season. The market is watching closely as the company approaches the critical juncture of Phase 2b results, which could significantly influence the stock’s performance and the company’s future trajectory. While the stock has delivered an impressive 70% return over the past year, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors seeking deeper insights can access comprehensive analysis and 10 additional ProTips through InvestingPro’s detailed research report, part of its coverage of over 1,400 US equities.

In other recent news, Cidara Therapeutics announced its first-quarter financial results, reporting lower-than-expected expenses and a strong cash position of $174 million. The company is eagerly awaiting the results of its Phase 2b trial for CD388, a novel influenza prevention drug. Analysts from JMP Securities have maintained a Market Outperform rating for Cidara and raised the stock target to $47, reflecting confidence in the upcoming trial outcomes. The Phase 2b trial, which involved 5,041 subjects, aims to evaluate CD388’s effectiveness as a single-dose, non-vaccine preventative for influenza. Results from this trial are anticipated in late June and are expected to significantly impact the company’s market opportunities.

Cidara’s recent R&D day provided insights into the Phase 3 plans for CD388, focusing on high-risk populations. Key opinion leaders expressed optimism about CD388’s potential, highlighting its potency against various influenza strains and its rapid manufacturing capabilities. Additionally, Cidara is exploring potential collaborations with organizations like BARDA for broader applications, such as H5N1 prevention. The anticipation of trial results has positioned Cidara for potential growth in the influenza prevention market, with analysts noting the drug’s significant market opportunity, particularly among high-risk subjects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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