Cidara Announces Closing of Upsized Public Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Cidara Therapeutics (Nasdaq: CDTX), a biotechnology company, has successfully completed an upsized public offering of 9,147,727 shares of common stock at $44.00 per share. The offering includes the full exercise of underwriters' option to purchase an additional 1,193,181 shares. The company raised gross proceeds of $402.5 million before deducting underwriting discounts and commissions.

The offering was managed by prominent financial institutions including J.P. Morgan, Morgan Stanley, Guggenheim Securities, and Cantor as joint book-running managers. The shares were offered through a shelf registration statement on Form S-3 that was declared effective by the SEC on May 15, 2025.

Positive

• Substantial capital raise of $402.5 million strengthens company's balance sheet
• Full exercise of underwriters' option indicates strong investor demand
• Offering was managed by top-tier investment banks, demonstrating institutional credibility

Negative

• Significant dilution for existing shareholders through issuance of over 9.1 million new shares

Insights

Biotechnology Financial Analyst

Cidara secured $402.5M through an upsized offering at $44/share, significantly strengthening its financial position to advance its Cloudbreak platform and DFC therapeutics pipeline.

Cidara Therapeutics has successfully completed a substantially upsized public offering, raising $402.5 million in gross proceeds before underwriting costs and expenses. The offering was not only fully subscribed but also saw underwriters exercise their full option to purchase additional shares, indicating strong investor interest. The company sold 9,147,727 shares at $44.00 per share, including 1,193,181 additional shares from the underwriters' option.

This capital raise represents a significant financial milestone for Cidara, providing substantial funding for its proprietary Cloudbreak® platform and drug-Fc conjugate (DFC) therapeutic development pipeline. The involvement of major financial institutions as joint book-running managers - J.P. Morgan, Morgan Stanley, Guggenheim Securities, and Cantor - signals institutional confidence in Cidara's technology and business trajectory.

For a biotechnology company focused on novel therapeutic platforms like Cloudbreak, this level of funding typically provides multiple years of operational runway. The $402.5 million cash infusion will likely accelerate Cidara's research and development efforts, potentially funding multiple clinical trials simultaneously while supporting pipeline expansion. The substantial size of this offering suggests Cidara is positioning for significant advancement of multiple drug candidates rather than merely extending existing programs.

This successful financing positions Cidara to execute its clinical development strategy from a position of financial strength, reducing near-term funding concerns and allowing management to focus on scientific and clinical milestones rather than capital raising activities. The timing aligns with the company's shelf registration that became effective in May 2025, demonstrating efficient capital markets execution.

SAN DIEGO, June 26, 2025 (GLOBE NEWSWIRE) -- Cidara Therapeutics, Inc. (“Cidara”) (Nasdaq: CDTX), a biotechnology company using its proprietary Cloudbreak® platform to develop drug-Fc conjugate (DFC) therapeutics, today announced the closing of its underwritten public offering of 9,147,727 shares of its common stock, including the exercise in full by the underwriters of their option to purchase an additional 1,193,181 shares, at a price to the public of $44.00 per share. The gross proceeds to Cidara from the offering, before deducting underwriting discounts and commissions and offering expenses, were $402.5 million. All of the shares in the offering were sold by Cidara.

J.P. Morgan, Morgan Stanley, Guggenheim Securities and Cantor acted as joint book-running managers for the offering.

The offering was made pursuant to a shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 8, 2025, and declared effective by the SEC on May 15, 2025. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available for free on the SEC’s website located at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from: J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, or by email at prospectus@morganstanley.com; Guggenheim Securities, LLC Attention: Equity Syndicate Department, 330 Madison Avenue, New York, NY 10017 or by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; or Cantor Fitzgerald & Co. by mail at Attention: Capital Markets, 110 East 59th Street, New York 10022 or by email at prospectus@cantor.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Cidara Therapeutics

Cidara Therapeutics is using its proprietary Cloudbreak® platform to develop novel DFCs comprising targeted small molecules or peptides coupled to a proprietary human antibody fragment. Cidara’s lead DFC candidate, CD388, is a long-acting antiviral designed to achieve universal prevention of seasonal and pandemic influenza with a single dose by directly inhibiting viral proliferation. In June 2023, CD388 was granted Fast Track Designation by the U.S. Food and Drug Administration, and Cidara announced completion of enrollment of its Phase 2b NAVIGATE trial in December 2024. Additional DFCs have been developed for oncology and in July 2024 Cidara received investigational new drug application clearance for CBO421 which is intended to target CD73 in solid tumors. Cidara is headquartered in San Diego, California.

Investor Contact:

Brian Ritchie
LifeSci Advisors
(212) 915-2578
britchie@lifesciadvisors.com

FAQ

How much did Cidara Therapeutics (CDTX) raise in its June 2025 public offering?

Cidara raised $402.5 million in gross proceeds through a public offering of 9,147,727 shares at $44.00 per share.

What was the price per share for Cidara's (CDTX) 2025 public offering?

The public offering price was set at $44.00 per share.

Did underwriters exercise their option in Cidara's (CDTX) 2025 offering?

Yes, the underwriters exercised their option in full to purchase an additional 1,193,181 shares.

Who were the underwriters for Cidara's (CDTX) 2025 public offering?

The joint book-running managers were J.P. Morgan, Morgan Stanley, Guggenheim Securities, and Cantor.

How many shares did Cidara (CDTX) sell in its June 2025 offering?

Cidara sold a total of 9,147,727 shares, which includes the full exercise of the underwriters' option for an additional 1,193,181 shares.