Proteostasis pulls stock offering following Kerrisdale short report; Cidara issues supplemental PhII rezafungin data
→ Hours after the company came under assault by the hit squad at Kerrisdale Capital, Proteostasis Therapeutics $PTI yanked a planned offering of 9 million shares. The Cambridge, MA-based Proteostasis was banking on the surge in share price it enjoyed after the FDA provided breakthrough status for its lead cystic fibrosis drug. Kerrisdale, though, issued a report saying that its Phase II data were essentially bogus. And the biotech’s shares plunged on the short attack. The stock is back up this morning, regaining the value lost after it initially announced the offering.
→ After reporting out positive data from its Phase II study testing its antifungal IV against candida infections, San Diego-based Cidara came out Wednesday morning with supplemental data to shore up investor confidence. The new data show the principal investigators’ assessments of the programmatic indeterminate outcomes confirm both dosing regimens of Cidara’s drug, rezafungin, were equally efficacious as predicted by the company’s Phase II pharmacokinetic data. Both dosing regimens provided therapeutic exposure above that needed to eradicate Candida infections, the company said in a statement. “Indeterminate responses in clinical studies are not unusual, despite investigators’ best efforts to avoid them,” said investigator Peter Pappas in a statement. “I am very pleased that the data support advancing rezafungin into future Phase III trials in both treatment and prophylaxis to address very real, clinical needs we experience every day.”
With additional reporting by Brittany Meiling.