- Transaction provides company with an estimated approximately $128 million in cost savings, including approximately $67 million in clinical development and CMC costs over the next three years and an additional approximately $61 million in forecasted obligations through the patent life of rezafungin
- Cidara to further focus on advancing Cloudbreak development programs, including a planned IND filing for its lead oncology candidate, CBO421, as well as advancing other pipeline assets
Cidara Therapeutics, Inc. (Nasdaq: CDTX), a biotechnology company using its proprietary Cloudbreak® platform to develop drug-Fc conjugate (DFC) immunotherapies designed to save lives and improve the standard of care for patients facing serious diseases, today announced that it has entered into an asset purchase agreement with its current partner, Mundipharma*, for the divestiture of rezafungin. Mundipharma currently has commercial rights to rezafungin outside the U.S. and Japan. Mundipharma purchased the assets in consideration of its assumption of the ongoing obligation to conduct and fund the ReSPECT Phase 3 clinical trial, the costs of the rezafungin patent portfolio and CMC and regulatory obligations. Cidara estimates that it will achieve approximately $128 million in cost savings over the patent life of rezafungin comprised of approximately $67 million in clinical development expense, including the cost of the potential upsizing of the ReSPECT trial and CMC costs over the next three years, and an additional approximately $61 million in forecasted obligations through the expected patent life of rezafungin.
“We are proud to have advanced rezafungin from preclinical development to approval in the US, EU, and UK for the treatment of patients suffering from life-threatening fungal infections,” said Jeffrey Stein, Ph.D., president and chief executive officer of Cidara. “With that accomplished, we believe the substantial cost savings enabled by this transaction will enable us to deploy our capabilities to progress our promising Cloudbreak pipeline and create opportunities to advance potentially transformational new therapies in oncology and other disease areas.”
Under the terms of the asset purchase agreement, all future royalties and milestones from Mundipharma and Melinta Therapeutics that were previously payable to Cidara, will transfer to Mundipharma. The purchased assets also include all rezafungin intellectual property rights, product data, regulatory approvals, rezafungin product and comparator inventory, specified prepaid assets and specified contracts. Prior to the sale, Mundipharma paid Cidara the $2.786 million milestone that became payable for the approval of rezafungin acetate for the treatment of invasive candidiasis in adults by the United Kingdom Medicines and Healthcare products Regulatory Agency. Mundipharma also agreed to waive Cidara’s obligation to reimburse Mundipharma for a $11.145 million milestone advance if Cidara completes transition services and the transfer of assets in accordance with the definitive agreements.
*Assets and rights acquired by Napp Pharmaceutical Group Limited, a member of the international network of Mundipharma independent associated companies.
