Shares of Cidara Therapeutics soared 18.5% in early New York trading, buoyed by news that Janssen Pharmaceuticals, a subsidiary of healthcare giant Johnson & Johnson (NYSE:JNJ) Inc, is set to champion the development of Cidara's promising flu prevention drug, CD388.
Preliminary tests have already highlighted the treatment's potential: a single dose notably reduced flu symptoms and was found to be safe for users. While Janssen takes the lead, Cidara won't be stepping away entirely.
The biotech firm will assist with ongoing trials, with Janssen footing the bill for their contributions.
The financial contours of this partnership are noteworthy. Alongside an immediate $7 million payment to Cidara, the deal includes provisions that could see Cidara pocketing up to $685 million, contingent on the drug's future successes.
At 9.32 am, the shares were changing hands for 94 cents, up 15 cents.