Cantor analyst Chiara Russo is sharing some positive perspective on Cidara Therapeutics Inc (NASDAQ:CDTX) after the firm announced this morning the enrollment is complete for the Phase 2 RADIANT trial of CD101 in acute vulvovaginal candidiasis (VVC) .
In reaction, the analyst reiterates an Overweight rating on CDTX with a price target of $20, which represents a nearly 84% increase from where the shares last closed.
Russo believes, “We anticipate data from the trial in the end of 1Q17. The trial is a three arm trial and should clarify the dosing regimen and formulation for a Phase 3: single daily dose of CD101 6% ointment; 3% gel dosed once a day for two days, and oral fluconazole. Following the RADIANT trial, we expect CDTX to run two superiority Phase 3 trials vs. placebo which we believe is a low clinical bar and a de-risked endpoint. CD101 is an echinocandin class of antifungal and would be the first and only topical formulation available if approved. An IV version of CD101 is currently in Phase 2 for blood infections which is expected to read out in 4Q17.”
Overall, “Our investment thesis is predicated on our belief that lead product candidate CD101 IV, with a comparable safety profile and potential best-in-class potency could carve out use as a first-line therapy in the acute setting for resistant or suspected resistance fungal infections,” Russo contends.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, one-star analyst Chiara Russo is ranked #3,106 out of 4,351 analysts. Russo has a 48% success rate and loses 0.5% in her yearly returns. When recommending CDTX, Russo loses 11.7% in average profits on the stock.
TipRanks analytics demonstrate CDTX as a Strong Buy. Out of 5 analysts polled by TipRanks in the last 3 months, all 5 rate a Buy on CDTX stock. The 12-month average price target stands at $21.40, marking a 100% upside from where the stock is currently trading.