Cidara CFO steps down, new appointment announced

Cidara Therapeutics, Inc. (NASDAQ:CDTX), a biopharmaceutical company currently valued at $262 million, announced the departure of its Chief Financial Officer, Preetam Shah, Ph.D., MBA, effective February 24, 2025. The company’s stock has shown remarkable momentum, delivering an 87% return over the past six months, though InvestingPro analysis indicates the company is currently trading near its Fair Value. Dr. Shah is leaving to pursue other professional opportunities, as stated in a mutual separation agreement dated February 14, 2025. Dr. Shah will receive nine months of salary, his fiscal year 2024 annual bonus, and up to 15 months of COBRA reimbursement. He has also agreed to a six-month consulting period post-separation during which his equity awards will continue to vest.

Following Dr. Shah’s departure, Frank Karbe will take over as the new CFO starting on the same date. Mr. Karbe, 56, brings experience from his previous role as President & CEO of Better Therapeutics, Inc., and tenure at Myovant Sciences (NYSE:MYOV), Inc., where he served as Principal Financial (NASDAQ:PFG) and Accounting Officer, CFO, and later as President and CFO. He has been on the board of Phathom Pharmaceuticals, Inc. since April 2022.

Under the terms of the employment agreement, Mr. Karbe will receive an annual base salary of $525,000, be eligible for a performance bonus, and receive a one-time signing bonus of $50,000. He will also be granted options to purchase 115,000 shares of Cidara’s common stock and a restricted stock unit for 57,500 shares. If terminated without cause or if he resigns for good reason, he is entitled to severance benefits, including salary continuation for nine months and health insurance premium payments. This extends to 12 months in the case of a change in control, along with other potential benefits.

The company has confirmed that there are no familial relationships between Mr. Karbe and any directors or executive officers, nor any material transactions that would require disclosure. Mr. Karbe’s employment terms will be detailed further in an exhibit to Cidara’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

This executive transition, as reported in a recent SEC filing, marks a significant change in Cidara Therapeutics’ leadership as it continues to navigate the biopharmaceutical landscape. With the company’s next earnings report due on March 7, 2025, investors tracking this transition can access 12 additional exclusive insights and detailed financial metrics through InvestingPro, including crucial profitability and growth indicators.

In other recent news, Cidara Therapeutics, a biotech firm, has been making significant strides in its operations. The company recently appointed Frank Karbe as its new CFO, a move that coincides with the progression of its lead drug candidate, CD388, through the Phase 2b NAVIGATE study for universal influenza prevention. Cantor Fitzgerald, a financial services firm, has assigned an Overweight rating to Cidara, expressing confidence in the potential of CD388.

The company has also reported changes to its executive team and board of directors, including the resignation of board member Laura Tadvalkar and the separation with Chief Medical (TASE:PMCN) Officer Taylor Sandison. Amid these changes, the company successfully raised approximately $105 million through a private placement led by Venrock Healthcare Capital Partners (WA:CPAP).

These recent developments at Cidara Therapeutics, including the advancement of drug trials, executive changes, and financial growth, underscore the company’s dynamic trajectory in the biotech sector.

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