Cidara Therapeutics (CDTX) director’s options cancelled for cash in Merck buyout
Rhea-AI Filing Summary
Cidara Therapeutics director reports option cancellation in Merck buyout
Director Theodore R. Schroeder reported the disposition of multiple stock options for Cidara Therapeutics, Inc. on January 7, 2026. According to the disclosed merger agreement, Merck Sharp & Dohme LLC, through a subsidiary, completed a tender offer for all outstanding common and Series A preferred shares of Cidara and then merged the subsidiary into Cidara, which continues as a wholly owned subsidiary of Merck.
Immediately prior to and contingent upon the effective time of the merger, each outstanding option became fully vested and exercisable and, to the extent it remained unexercised, was cancelled and converted into a right to receive cash. The cash amount for each option equals the number of common shares subject to the option multiplied by the excess of $221.50 per share over the option’s exercise price, with all derivative positions reported in this filing reduced to zero after the transactions.
Positive
- None.
Negative
- None.
Insights
Director’s options are cashed out as Cidara becomes a Merck subsidiary.
The filing shows how Cidara Therapeutics director Theodore R. Schroeder’s stock options were treated when Merck completed its acquisition on January 7, 2026. A Merck subsidiary completed a tender offer for all outstanding common and Series A preferred shares and then merged into Cidara, leaving Cidara as a wholly owned subsidiary of Merck Sharp & Dohme LLC.
Per the merger agreement, each outstanding option became fully vested and exercisable immediately prior to the merger’s effective time. Any options still outstanding and unexercised at that moment were cancelled and converted into a cash right equal to the number of underlying common shares multiplied by the excess of $221.50 per share over the applicable exercise price. The reported stock option positions in this filing all show 0 derivative securities remaining afterward.
This structure is typical for all-cash mergers, providing cash consideration for vested but unexercised options rather than leaving them outstanding. Future company disclosures may further detail aggregate consideration and how similar equity awards for other holders were handled under the same Merger Agreement.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Stock Option (right to buy) | 450 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 550 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 550 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 550 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 875 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 875 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 1,400 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 2,125 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 2,125 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 20,500 | $0.00 | -- |
| Disposition | Stock Option (right to buy) | 11,100 | $0.00 | -- |
Footnotes (1)
- The exercise price and the number of securities reported herein have been adjusted to reflect the 1-for-20 reverse stock split effected by the Issuer on April 24, 2024. Pursuant to the Agreement and Plan of Merger (the "Merger Agreement"), dated November 13, 2025, by and among Cidara Therapeutics, Inc. (the "Issuer"), Merck Sharp & Dohme LLC ("Merck") and Caymus Purchaser, Inc., a wholly owned subsidiary of Merck ("Purchaser"), on January 7, 2026, Purchaser completed a tender offer to acquire (i) all outstanding shares of common stock of the Issuer, par value $0.0001 per share (each, a "Common Share") and (ii) all outstanding shares of Series A Convertible Voting Preferred Stock of the Issuer, par value $0.0001 per share and thereafter merged with and into the Issuer, with the Issuer continuing as the surviving corporation and a wholly owned subsidiary of Merck (the "Merger"). As of immediately prior to and contingent upon the occurrence of the effective time of the Merger, pursuant to the Merger Agreement, each outstanding option became fully vested and exercisable, and to the extent outstanding and unexercised as of immediately before the effective time of the Merger, was cancelled at the effective time of the Merger and converted into the right to receive cash, without interest, subject to any applicable withholding of taxes, in an amount equal to the product of (i) the total number of Common Shares subject to such option immediately prior to the effective time of the Merger multiplied by (ii) the excess of (x) $221.50 per Common Share over (y) the exercise price payable per Common Share under such option.
