Cidara Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Cidara Therapeutics (Nasdaq: CDTX), a biotechnology company specializing in drug-Fc conjugate therapeutics through its Cloudbreak® platform, has announced plans for a $250.0 million underwritten public offering of common stock. The company intends to grant underwriters a 30-day option to purchase up to an additional 15% of shares.

The offering will be managed by joint book-runners J.P. Morgan, Morgan Stanley, Guggenheim Securities, and Cantor. The offering is being made through a shelf registration statement on Form S-3 that was declared effective by the SEC on May 15, 2025.

Positive

• Potential to raise up to $250.0 million in capital through the offering
• Additional 15% share option for underwriters indicates potential market interest
• Strong lineup of reputable investment banks as joint book-runners

Negative

• Significant dilution expected for existing shareholders
• Stock price likely to face downward pressure due to increased share supply
• Uncertainty regarding the final terms and completion of the offering

Insights

Financial Analyst

Cidara's $250M public offering will significantly dilute shareholders while bolstering cash reserves for Cloudbreak® platform development.

Cidara Therapeutics has announced a substantial $250 million common stock offering that signals a major capital raise for the biotechnology company. This offering represents a significant dilution event for existing shareholders, as the company will be issuing new shares to raise these funds. Additionally, underwriters have been granted a 30-day option to purchase up to an additional 15% of shares, potentially increasing the dilution effect.

The size of this offering is particularly noteworthy relative to Cidara's current market capitalization. The company is deploying a syndicate of heavyweight investment banks (J.P. Morgan, Morgan Stanley, Guggenheim Securities, and Cantor) as joint book-running managers, suggesting institutional interest in the fundraising.

While the press release doesn't specify the intended use of proceeds, biotechnology companies typically raise capital of this magnitude to fund research and development activities, advance clinical trials, or prepare for commercial launches. Given Cidara's focus on its proprietary Cloudbreak® platform for developing drug-Fc conjugate (DFC) therapeutics, these funds will likely accelerate the development of this technology platform and associated pipeline candidates.

The offering follows the company's recent shelf registration filing on May 8, 2025, which was declared effective on May 15, 2025, demonstrating that this capital raise has been planned for at least a month. The completion timing and final terms remain subject to market conditions, which introduces some uncertainty about the final execution of this financing.

SAN DIEGO, June 23, 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 its plans to commence an underwritten public offering, subject to market and other conditions, to issue and sell $250.0 million of shares of its common stock. All of the shares are being offered by Cidara. In connection with the proposed offering, Cidara expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock sold in the public offering. There can be no assurance as to whether or when the proposed offering may be completed or as to the actual size or terms of the proposed offering.

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

The proposed offering is being 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 preliminary prospectus supplement and accompanying prospectus relating to the proposed offering will be filed with the SEC and will be available for free on the SEC’s website located at http://www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the proposed offering may be obtained, when available, 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.

Forward-Looking Statements

Statements contained in this press release regarding Cidara’s expectations regarding the offering are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, Cidara’s expectations regarding the completion, timing and size of the proposed offering and with respect to granting the underwriters a 30-day option to purchase additional shares. Forward-looking statements are based upon Cidara’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks associated with market conditions and the satisfaction of closing conditions related to the proposed public offering and risks and uncertainties associated with Cidara’s business and finances in general. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Cidara’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC, as well as discussions of potential risks, uncertainties, and other important factors in Cidara’s other filings with the SEC, including those contained or incorporated by reference in the preliminary prospectus supplement and accompanying prospectus related to the offering to be filed with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Cidara undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Investor Contact:

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

FAQ

How much is Cidara Therapeutics (CDTX) planning to raise in its public offering?

Cidara is planning to raise $250.0 million through an underwritten public offering of common stock.

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

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

What is the overallotment option in Cidara's (CDTX) public offering?

Underwriters will have a 30-day option to purchase up to an additional 15% of shares sold in the public offering.

What will Cidara Therapeutics (CDTX) use the offering proceeds for?

The press release does not specify the intended use of proceeds from the $250.0 million offering.

When was Cidara's (CDTX) shelf registration statement declared effective?

The shelf registration statement on Form S-3 was declared effective by the SEC on May 15, 2025.