Cidara Therapeutics (NASDAQ: CDTX) shares experienced a remarkable surge subsequent to the company's announcement regarding the transfer of rezafungin, an antifungal therapeutic, to its collaborator, Mundipharma. Cidara Therapeutics shares value soared by an impressive 40.68% to $17.29 during after-hours trading.
The surge followed a substantial increase in CDTX stock on the US charts of 19.90% to $12.29 in the regular trading session. As per the terms delineated in the agreement, Mundipharma will procure rezafungin for an undisclosed monetary consideration. The procurement encompasses assuming responsibility for ongoing expenditures linked with the ReSPECT Phase 3 clinical trial, the patent portfolio associated with rezafungin, and the manufacturing and regulatory obligations.
This deal is projected to translate into significant cost savings of approximately $128 million for Cidara Therapeutics over the lifespan of the rezafungin patents. This translates to a cost avoidance of $67 million in clinical development and an estimated $61 million in other potential liabilities. This financial windfall will empower Cidara Therapeutics to channel its resources towards its promising Cloudbreak pipeline.
This pipeline holds immense potential, harboring the possibility of groundbreaking new therapies in the fields of oncology and other disease areas. Following the acquisition, Mundipharma will assume ownership of all future royalties and milestones associated with rezafungin. The agreement also entails the transfer of all intellectual property rights, product data, regulatory approvals, and inventory pertaining to rezafungin.
It's worth noting that Mundipharma had already settled a $2.786 million milestone payment to Cidara, triggered by the UK regulatory body's approval of rezafungin acetate for treating invasive candidiasis in adults. Furthermore, Mundipharma has agreed to waive a $11.145 million debt owed by Cidara upon successful completion of the asset transfer process.
By divesting rezafungin, Cidara Therapeutics has secured substantial cost savings, freeing up resources to focus on its Cloudbreak pipeline with the potential to deliver revolutionary therapies. This strategic move has been well-received by investors, reflected in the significant surge in the company's stock price.