Cidara Therapeutics, Inc. (CDTX) Bundle
Understanding Cidara Therapeutics, Inc. (CDTX) Revenue Streams
Understanding Cidara Therapeutics, Inc.’s Revenue Streams
The revenue generated by the company is primarily derived from collaboration agreements, product revenues, and research and development services. The breakdown of revenue sources is as follows:
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Collaboration Revenue | $0 | $9,217 | $1,275 | $20,527 |
| Product Revenue | $0 | $1,468 | $0 | $1,468 |
| Research and Development Services | $0 | $5,592 | $1,273 | $16,324 |
| Clinical Supply Services | $11 | $5 | $175 | $245 |
| Total Revenue | $11 | $16,277 | $2,723 | $38,564 |
Year-over-year, the revenue growth rate has shown a significant decline primarily due to the termination of the Janssen Collaboration Agreement, which was a major source of revenue in 2023. The collaboration revenue decreased from $20.5 million in the nine months ended September 30, 2023, to $1.3 million in the same period in 2024, marking a decrease of 93.8%.
The contribution of different business segments to overall revenue highlights the reliance on collaboration agreements. For instance, collaboration revenue accounted for 100% of total revenue in the previous year, while product revenue was negligible in 2024 due to the cessation of the rezafungin program.
In terms of operational changes, the termination of collaboration agreements has led to a drastic reduction in revenue streams. The company's pivot towards new collaborations, including the recent license agreement with Janssen, indicates a strategic shift to recover from the revenue losses experienced in 2024.
The following table summarizes the key changes in revenue streams:
| Revenue Stream | Change (2024 vs 2023) |
|---|---|
| Collaboration Revenue | Decrease of $19.25 million |
| Research and Development Services | Decrease of $15.05 million |
| Product Revenue | No revenue in 2024 |
Overall, the financial health of the company as reflected in its revenue analysis for 2024 indicates challenges in maintaining consistent revenue streams due to strategic shifts and collaboration terminations. The focus on rebuilding revenue through new partnerships and continuing R&D efforts will be critical moving forward.
A Deep Dive into Cidara Therapeutics, Inc. (CDTX) Profitability
A Deep Dive into Cidara Therapeutics, Inc. Profitability
Gross Profit Margin: For the nine months ended September 30, 2024, the total revenues were $1.275 million with a gross profit margin of 0% as there were no revenues reported for the three months ended September 30, 2024. In comparison, for the same period in 2023, total revenues were $20.527 million with a gross profit margin reflective of collaboration revenue from prior agreements.
Operating Profit Margin: The loss from operations for the nine months ended September 30, 2024, was ($121.92 million), resulting in an operating profit margin of -9,569.02%. For the nine months ended September 30, 2023, the loss from operations was ($18.36 million), equating to an operating profit margin of -89.37%.
Net Profit Margin: The net loss for the nine months ended September 30, 2024, was ($117.52 million), resulting in a net profit margin of -9,213.47%. In contrast, the net loss for the nine months ended September 30, 2023, was ($19.72 million), leading to a net profit margin of -95.89%.
Trends in Profitability Over Time
Over the last year, the company has seen a significant decline in profitability. The gross revenue dropped from $20.527 million in 2023 to $1.275 million in 2024, primarily due to the termination of collaboration agreements. This resulted in a substantial increase in net loss from $19.72 million in 2023 to $117.52 million in 2024.
Comparison of Profitability Ratios with Industry Averages
| Metric | Cidara Therapeutics, Inc. (2024) | Industry Average |
|---|---|---|
| Gross Profit Margin | 0% | 70% |
| Operating Profit Margin | -9,569.02% | -15% |
| Net Profit Margin | -9,213.47% | -12% |
Analysis of Operational Efficiency
In terms of operational efficiency, the company reported total operating expenses of $123.195 million for the nine months ended September 30, 2024, significantly up from $38.886 million in 2023. Research and development expenses accounted for $25.005 million in 2024, down from $28.753 million in 2023, indicating a strategic shift towards managing costs amid declining revenues.
Selling, general, and administrative expenses rose to $13.307 million in 2024, compared to $10.133 million in 2023, reflecting increased costs associated with higher audit fees and legal costs. This increase in operating expenses, juxtaposed with declining revenues, has exacerbated the company's profitability challenges.
Debt vs. Equity: How Cidara Therapeutics, Inc. (CDTX) Finances Its Growth
Debt vs. Equity: How Cidara Therapeutics Finances Its Growth
As of September 30, 2024, Cidara Therapeutics, Inc. reported total liabilities of $46.7 million and total stockholders’ equity of $115.6 million, resulting in a debt-to-equity ratio of 0.40. This ratio is significantly lower than the average for the biotechnology industry, which typically ranges from 0.50 to 1.00, indicating a conservative approach to leveraging debt in its capital structure.
The company has no outstanding loan balances as of the latest financial report, which reflects a strategic decision to minimize debt financing. Instead, financing activities have primarily been through equity, exemplified by the recent private placement in April 2024 where 240,000 shares of Series A Convertible Voting Preferred Stock were sold, generating gross proceeds of $240.0 million.
Below is a summary of Cidara's debt levels and equity financing activities:
| Category | Amount (in thousands) |
|---|---|
| Total Liabilities | $46,701 |
| Total Stockholders' Equity | $115,630 |
| Debt-to-Equity Ratio | 0.40 |
| Cash and Cash Equivalents | $127,386 |
| Net Cash Provided by Financing Activities (2024) | $238,856 |
In terms of recent debt issuances, the company has focused on equity financing rather than traditional debt instruments. The most significant recent equity issuance occurred in April 2024, where the company utilized the proceeds to fund an upfront payment of $85.0 million to Janssen Pharmaceuticals as part of a licensing agreement. This strategic move illustrates the company's reliance on equity over debt to finance its growth initiatives.
Furthermore, Cidara has a finance lease for lab equipment expiring in January 2027, with total undiscounted finance lease payments amounting to $0.7 million. This represents a small portion of the company's overall liabilities, further emphasizing its preference for equity financing to support operational growth.
The following table summarizes Cidara’s recent equity financing activities:
| Date | Type of Issuance | Shares Issued | Proceeds (in millions) |
|---|---|---|---|
| April 2024 | Private Placement | 240,000 | $240.0 |
| March 2023 | Public Offering | 554,300 | $19.5 |
This strategic balance between debt and equity financing allows Cidara to maintain operational flexibility while minimizing financial risk. The company continues to focus on funding its research and development programs primarily through equity, thereby avoiding the complications associated with debt obligations.
Assessing Cidara Therapeutics, Inc. (CDTX) Liquidity
Assessing Cidara Therapeutics, Inc.'s Liquidity
As of September 30, 2024, Cidara Therapeutics, Inc. reported a current ratio of 3.81, indicating a strong liquidity position. The quick ratio, which excludes inventory from current assets, stood at 3.81 as well, reflecting a similar liquidity strength.
Working Capital Trends
Working capital, defined as current assets minus current liabilities, amounted to $127.4 million as of September 30, 2024. This figure reflects a significant increase compared to the previous year, demonstrating improved liquidity management. The following table summarizes the working capital details:
| Period | Current Assets (in millions) | Current Liabilities (in millions) | Working Capital (in millions) |
|---|---|---|---|
| September 30, 2024 | $127.4 | $33.2 | $94.2 |
| September 30, 2023 | $48.7 | $30.2 | $18.5 |
Cash Flow Statements Overview
The cash flow statement for the nine months ended September 30, 2024, indicates net cash used in operating activities of ($147.1 million), a significant increase from ($9.7 million) for the same period in 2023. Cash flow from investing activities was ($0.129 million) in 2024 compared to ($0.327 million) in 2023. Financing activities provided a net cash inflow of $238.9 million in 2024, up from $26.0 million in 2023.
The following table summarizes cash flow trends:
| Cash Flow Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Activities | ($147.1) | ($9.7) |
| Investing Activities | ($0.129) | ($0.327) |
| Financing Activities | $238.9 | $26.0 |
| Net Cash Increase | $91.6 | $15.9 |
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the company had cash and cash equivalents of $127.4 million, which is expected to support operations through mid-2025. However, the company has an accumulated deficit of $559.0 million and continues to incur substantial operating losses. The reliance on equity financing poses potential risks, particularly in volatile market conditions. The ability to secure additional funding remains a critical factor for sustaining operational liquidity.
In summary, while the current liquidity ratios and cash positions indicate a robust short-term liquidity framework, ongoing losses and the need for future financing highlight potential vulnerabilities.
Is Cidara Therapeutics, Inc. (CDTX) Overvalued or Undervalued?
Valuation Analysis
Is Cidara Therapeutics, Inc. Overvalued or Undervalued?
To assess the valuation of Cidara Therapeutics, Inc., we analyze key financial ratios, stock price trends, and analyst consensus.
Price-to-Earnings (P/E) Ratio
As of September 30, 2024, the company reported a net loss of $117.5 million for the nine-month period. Given the lack of positive earnings, the P/E ratio is not applicable. However, the basic and diluted net loss per common share was $22.53.
Price-to-Book (P/B) Ratio
The company's total stockholders' equity at September 30, 2024, was $115.6 million. With approximately 7.05 million shares outstanding, the book value per share is approximately $16.38. If the current stock price is $12.00, the P/B ratio would be approximately 0.73.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The company has not reported positive EBITDA, making the EV/EBITDA ratio not applicable. The enterprise value is calculated based on market capitalization and total debt, which as of September 30, 2024, included a cash balance of $127.4 million.
Stock Price Trends
Over the last 12 months, the stock has experienced volatility. The stock price was approximately $20.00 a year ago, and it has since decreased to around $12.00. This represents a decline of 40%.
Dividend Yield and Payout Ratios
The company does not currently pay a dividend, and thus the dividend yield is 0%.
Analyst Consensus
Analyst consensus on the stock is currently mixed, with ratings varying from buy to hold. As of the latest reports, the average target price is set at $15.00, indicating an upside potential from the current trading price.
| Metric | Value |
|---|---|
| Net Loss (9 months ended Sept 30, 2024) | $117.5 million |
| Basic and Diluted Net Loss per Share | $22.53 |
| Total Stockholders' Equity | $115.6 million |
| Book Value per Share | $16.38 |
| P/B Ratio | 0.73 |
| Current Stock Price | $12.00 |
| Stock Price 12 months ago | $20.00 |
| Stock Price Decline | 40% |
| Dividend Yield | 0% |
| Analyst Consensus | Mixed (Buy/Hold) |
| Average Target Price | $15.00 |
Key Risks Facing Cidara Therapeutics, Inc. (CDTX)
Key Risks Facing Cidara Therapeutics, Inc. (CDTX)
Overview of Internal and External Risks:
Cidara Therapeutics, Inc. is exposed to various internal and external risks that could impact its financial health significantly. The following are key risk factors:
- Industry Competition: The biotechnology sector is highly competitive, with numerous companies vying for market share in therapeutic areas. This competition could hinder the company's ability to attract collaborations or achieve market penetration.
- Regulatory Changes: The company’s operations are subject to stringent regulations by the FDA and other regulatory bodies. Any changes in these regulations could delay product development and increase costs.
- Market Conditions: Global economic conditions can adversely affect the company’s ability to raise capital, impacting its research and development activities.
Operational, Financial, or Strategic Risks:
Recent earnings reports highlight several operational and financial risks:
- Operating Losses: The company reported a net loss of $117.5 million for the nine months ended September 30, 2024, compared to $19.7 million for the same period in 2023.
- Accumulated Deficit: As of September 30, 2024, the accumulated deficit stood at $559.0 million.
- Cash Flow Concerns: The net cash used in operating activities for the nine months ended September 30, 2024, was $147.1 million, a significant increase from $9.7 million in the prior year.
Mitigation Strategies:
The company has implemented several strategies to mitigate risks:
- Funding Initiatives: In April 2024, the company raised $240.0 million through the issuance of Series A Convertible Voting Preferred Stock.
- Cost Reduction Measures: A workforce reduction of approximately 30% was completed in November 2024 to reduce capital needs related to personnel costs.
- Sales Agreement Capacity: As of September 30, 2024, the remaining capacity under the Sales Agreement was $37.1 million, which can be utilized for future funding.
| Risk Factor | Description | Recent Financial Impact |
|---|---|---|
| Operating Losses | Significant net losses reported | $117.5 million (2024) |
| Accumulated Deficit | Accumulated losses since inception | $559.0 million (2024) |
| Cash Flow | Increased cash used in operations | $147.1 million (2024) |
| Funding Initiatives | Raised capital through stock issuance | $240.0 million (2024) |
| Cost Reduction | Workforce reduction to manage expenses | 30% reduction (2024) |
Future Growth Prospects for Cidara Therapeutics, Inc. (CDTX)
Future Growth Prospects for Cidara Therapeutics, Inc.
Key growth drivers for Cidara Therapeutics, Inc. include product innovations, market expansions, and strategic partnerships.
Product Innovations
The most advanced product candidate is CD388, a drug designed for the prevention and treatment of seasonal and pandemic influenza. This candidate has completed Phase 1 and Phase 2a clinical trials. The company reacquired rights to CD388 from Janssen on April 24, 2024, which allows for further development and commercialization efforts.
Market Expansions
In addition to existing markets, Cidara is seeking to expand its reach through collaborations and potential licensing agreements. The company has formed subsidiaries in the UK and Ireland to facilitate its operations in Europe.
Acquisitions and Strategic Partnerships
On April 24, 2024, Cidara entered into a Private Placement, raising $240 million from institutional investors through the sale of 240,000 shares of Series A Convertible Voting Preferred Stock. This capital will support ongoing clinical trials and operational needs.
Future Revenue Growth Projections
For the nine months ending September 30, 2024, collaboration revenue was $1.3 million, a decrease from $20.5 million in the same period of 2023. This decline is attributed to the termination of the Janssen Collaboration Agreement following the new licensing agreement.
Earnings Estimates
The net loss for the nine months ended September 30, 2024, was $117.5 million, compared to $19.7 million for the same period in 2023. The company anticipates continued operating losses as it invests heavily in R&D.
Strategic Initiatives
Key initiatives include advancing CD388 through clinical trials and seeking regulatory approvals. The company has also incurred $84.9 million in acquired in-process research and development expenses related to the licensing agreement with Janssen.
Competitive Advantages
With its proprietary Cloudbreak platform, Cidara is positioned to innovate in the drug-Fc conjugate space, potentially leading to significant advancements in immunotherapies. The company holds an accumulated deficit of $559 million as of September 30, 2024, indicating substantial investment in growth.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Collaboration Revenue | $1.3 million | $20.5 million |
| Net Loss | $117.5 million | $19.7 million |
| Accumulated Deficit | $559 million | $441 million |
| Acquired IPR&D Expenses | $84.9 million | N/A |
| Cash and Cash Equivalents | $127.4 million | $48.7 million |
Cidara Therapeutics, Inc. (CDTX) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Cidara Therapeutics, Inc. (CDTX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cidara Therapeutics, Inc. (CDTX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cidara Therapeutics, Inc. (CDTX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.