Cidara Therapeutics Inc (NASDAQ:CDTX) provided an update on the status of its ongoing CD388 program for the prevention of influenza A and B under an exclusive worldwide license and collaboration agreement with Janssen Pharmaceuticals Inc, a part of Johnson & Johnson (NYSE:JNJ).
As part of a recent prioritization of its R&D business, Janssen has announced its intention to discontinue the internal development of most of its infectious disease pipeline, including JNJ-0953 (CD388).
However, at this time, Janssen has not informed Cidara of any intention to terminate the agreement between the two parties.
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Cidara continues to collaborate with Janssen to complete the Phase 1 and Phase 2a clinical trials and will be reimbursed for all ongoing development activities by Janssen as per the collaboration agreement.
Under the Janssen agreement, within 90 days after Cidara delivers the complete CD388 Phase 2a data package to Janssen (anticipated later this year), Janssen must notify Cidara whether it will proceed with clinical development.
If Janssen elects to proceed, it is obligated at its sole expense to continue development and commercialization either itself or through a third party to whom it sublicenses or assigns the rights.
If Janssen decides not to proceed, Cidara would have the right to terminate the agreement and retain the CD388 program, including all data and materials funded by Janssen’s investment in the program.
“Based on the positive interim Phase 2a data, the competitive landscape, and substantial market opportunity, we remain excited for the significant potential of CD388 in the prevention of influenza A and B, whether we or another party further advances this promising asset,” said Jeffrey Stein, President & CEO of Cidara.
Price Action: CDTX shares are down 3.79% at $1.06 on the last check Friday.
