SAN DIEGO - Cidara Therapeutics, Inc. (NASDAQ:CDTX), a biotechnology firm specializing in immunotherapies, disclosed today that it has filed its overdue Annual Report for the fiscal year ending December 31, 2023, with the Securities and Exchange Commission (SEC). This move comes after receiving a notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC regarding non-compliance with the Nasdaq Listing Rule 5250(c)(1) for failing to file the report on time, which could lead to delisting.
The company has informed the Nasdaq Hearings Panel of its actions and plans to execute a reverse stock split of its common stock at a 1-for-20 ratio, effective as the market opens on Wednesday, April 24, 2024. This announcement follows a previous communication from the Nasdaq Panel dated February 8, 2024, which allowed Cidara to continue its Nasdaq listing under the condition that it meets the minimum $1.00 bid price requirement by May 7, 2024.
Cidara's proprietary Cloudbreak® platform is at the forefront of its efforts to develop drug-Fc conjugate (DFC) immunotherapies, aiming to enhance patient care for serious diseases, including cancer. The company has also received FDA and EC approval for REZZAYO® (rezafungin for injection), an antifungal medication licensed to partners for commercialization in the U.S. and internationally.
The recent developments, including the reverse stock split and the filing of the Annual Report, are part of Cidara's strategy to regain compliance with Nasdaq's listing standards. The information contained in this article is based on a press release statement from Cidara Therapeutics, Inc.
InvestingPro Insights
In light of Cidara Therapeutics' recent efforts to comply with Nasdaq's listing standards, it's important to consider the company's financial health and market performance. According to InvestingPro data, Cidara Therapeutics currently holds a market capitalization of $46.58 million. The company's Price / Book ratio as of the last twelve months ending Q3 2023 stands at 7.68, which suggests the stock is trading at a higher valuation in terms of book value. Additionally, Cidara has experienced a revenue decline of 7.75% over the last twelve months, indicating challenges in growing its top line.
InvestingPro Tips for Cidara Therapeutics highlight several key factors for potential investors to consider. The company holds more cash than debt on its balance sheet, which could provide some financial flexibility. However, analysts have noted that Cidara is quickly burning through its cash reserves. Moreover, the stock has suffered a significant decline over the last week, and it is currently trading near its 52-week low. These insights suggest that while Cidara has taken steps to address compliance issues, there are underlying financial concerns that investors should be aware of.
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