Ladenburg Thalmann launched coverage of Cidara Therapeutics (NASDAQ:CDTX) with a “buy” rating and $11.25 price target. The stock closed at $6.95 on March 11.
“We view Cidara as a balanced portfolio of infectious disease therapeutics led by an experienced management team with a track record of successful clinical development and returning value for shareholders,” writes analyst Kevin DeGeeter.
He views the company’s pipeline comprising three baskets: a best-in-class, reduced-risk program, such as CD101, with clinically proven targets and mechanism of action; higher-risk novel mechanisms for targeting clinically validated targets, such as CD201; and greenfield opportunities, such as the recently disclosed antibody-drug conjugate programs, offering both new mechanisms and potential to address novel targets.
Mr. DeGeeter believes Cidara is positioned to complete three important milestones before requiring additional financial resources.
These include presentation of Phase 2 data from the STRIVE study of CD101 IV in adults with severe candidemia, which is expected in the fourth quarter this year; initiation of Phase 1 development for its lead Cloudbreak antibiotic, CD201, for treatment of patients who are multi-drug resistant; and the potential for business development, including licensing of CD101 in certain countries outside the U.S., he added.
