SAN DIEGO – Cidara Therapeutics, Inc. (NASDAQ:CDTX), a biopharmaceutical company with a market capitalization of $296 million and trading near its 52-week high of $28.42, reported significant changes to its executive team and board of directors in a recent 8-K filing with the Securities and Exchange Commission.
According to InvestingPro analysis, the company's stock has shown remarkable momentum, delivering a 122% return over the past six months.
The company announced the resignation of board member Laura Tadvalkar, Ph.D., effective January 3, 2025, which was not due to any disagreements with the company's operations or practices.
Additionally, Cidara disclosed the mutual agreement for separation with Chief Medical (TASE:PMCN) Officer Taylor Sandison, M.D., M.P.H., effective February 3, 2025. Dr. Sandison's departure terms include nine months of salary and health coverage continuation for the same period.
These changes come as the company maintains a strong liquidity position with a current ratio of 3.54, though InvestingPro data indicates the company is quickly burning through its cash reserves.
In return, Dr. Sandison agreed to waive any claims related to his employment and separation. Nicole Davarpanah, M.D., J.D., Senior Vice President of Translational Research and Development, will temporarily assume the Chief Medical Officer responsibilities.
In the same filing, the company revealed the appointment of Josh Resnick, M.D., as a Class II board member, with a term expiring at the 2026 annual stockholder meeting. Dr. Resnick's appointment follows no specific arrangements or undisclosed transactions. He will receive an annual cash retainer of $40,000 and was granted an option to purchase 22,200 shares of company stock, vesting over three years, with additional automatic annual option grants.
These corporate governance updates follow the board's December 6, 2024, amendment and restatement of the company's Non-Employee Director Compensation Policy. The updated policy details the compensation structure for non-employee directors, including annual retainers and stock option grants, which fully vest either on the one-year anniversary of the grant or the day before the company's subsequent annual stockholder meeting.
The information provided is based on Cidara Therapeutics' latest SEC filing and reflects changes within the company's leadership structure. While the company faces challenges with negative EBITDA of -$43 million in the last twelve months, its stock performance remains strong with a 72% return over the past year. Discover more insights about Cidara's financial health and 12 additional exclusive tips with InvestingPro.
In other recent news, Cidara Therapeutics, a biotechnology firm, has announced a securities purchase agreement to raise about $105 million through a private placement. This transaction is spearheaded by Venrock Healthcare Capital Partners (WA:CPAP), with participation from other investors such as RA Capital Management and TCGX.
The company is set to issue more than 3.8 million shares of common stock and pre-funded warrants for approximately 3.1 million shares. This capital boost is expected to close around November 25, 2024, with the net proceeds directed towards research and development, working capital, and other corporate purposes.
In addition to this financial development, Cidara Therapeutics has initiated a Phase 2b NAVIGATE trial for its influenza drug CD388 and announced a 30% workforce reduction to focus resources on the drug's development. The company has also appointed Jim Beitel as the new Chief Business Officer, following a stock rating upgrade from Neutral to Buy by H.C. Wainwright.
Furthermore, the company has expanded its authorized common stock shares from 20 million to 50 million and has sold its rezafungin program to Mundipharma. Cidara Therapeutics has also reacquired its Phase 2b-ready influenza program from Johnson & Johnson, followed by a $240 million private investment in public equity financing deal. These are recent developments that underscore the company's efforts to advance its clinical and preclinical initiatives.
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