Cidara Therapeutics (NASDAQ:CDTX) stock is falling on Thursday despite the immunotherapy company getting positive news from the Food and Drug Administration (FDA).
The big FDA news is the approval of rezafungin as a treatment for “candidemia and invasive candidiasis in adult patients with limited or no alternative treatment options.” That allows it a $20 million milestone payment from its agreement with Melinta Therapeutics.
To go along with this, Melinta Therapeutics, the licensor of the drug, intends to launch it this summer. That could result in another $40 million in regulatory milestone payments and $370 million in commercial milestones. It also gets royalties from sales.
So Why Is CDTX Stock Falling Today?
Investors can blame the company’s latest earnings report for the drop. The company brought in earnings per share of -19 cents on revenue of $10.21 million for the fourth quarter of 2022. Both of those are below Wall Street’s estimates of -17 cents per share and revenue of $10.57 million. For comparison, CDTX reported EPS of -26 cents and revenue of $7.2 million in the same period of the year prior.
While the FDA news concerning rezafungin is good news for CDTX stock, these missed earnings are overshadowing that announcement. As a result, the company’s shares are falling 12.1% during pre-market trading on Thursday. However, the company’s stock is up 153.3% year-t0-date as of Wednesday’s close.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
