Cidara Therapeutics (CDTX): Assessing Valuation Following Breakthrough Phase 2b Influenza Data and FDA Recognition

Cidara Therapeutics (CDTX) has drawn fresh investor attention after sharing robust new data from its Phase 2b trial for CD388. The results show a strong ability to prevent influenza A and B in high-risk groups.

See our latest analysis for Cidara Therapeutics.

Following these encouraging clinical milestones, Cidara Therapeutics has become one of the most talked-about names in biotech this year. After a stretch of limited activity earlier in 2025, the FDA's Breakthrough Therapy designation for CD388 and new trial data have put the company in the spotlight. Momentum is clearly building, as shown by a stunning year-to-date share price return of 263.85% and a remarkable 1-year total shareholder return of 779.03%. This suggests optimism around the company’s long-term prospects as it advances its novel flu prevention candidate.

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With such dramatic gains and positive clinical data piling up, the big question for investors now is whether Cidara Therapeutics is still undervalued or if the market is already reflecting all that future promise in the current price.

Price-to-Book of 5x: Is it justified?

Cidara Therapeutics trades at a price-to-book ratio of 5x, putting its valuation well above both peer and industry averages. With a last close price of $99.33, this suggests a significant market premium on the company despite its early-stage earnings profile.

The price-to-book ratio compares a company's market value to its book value and is often used for asset-light sectors like biotech to gauge investor expectations. For Cidara, a 5x ratio indicates that investors are pricing in high future growth, placing hefty value on the company’s research pipeline and perceived competitive edge, even though it is not currently profitable.

Compared to the US Biotechs industry average of 2.6x and peer companies at 3.9x, Cidara's higher multiple stands out. This signals that the market sees stronger upside potential or unique prospects in Cidara's future development pipeline, although such a premium carries heightened risk and expectation.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 5x (OVERVALUED)

However, a lack of profitability and revenue, along with Cidara’s heavy reliance on future trial success, could dampen the current optimism.

Find out about the key risks to this Cidara Therapeutics narrative.

Build Your Own Cidara Therapeutics Narrative

If you want to look deeper or see things from a different angle, building your own narrative on Cidara’s outlook takes just minutes. Do it your way

A great starting point for your Cidara Therapeutics research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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