By Colin Kellaher


Shares of Cidara Therapeutics rose sharply in premarket trading Wednesday after the biotechnology company said a Johnson & Johnson unit plans to proceed with the development of CD388 for the prevention of influenza A and B.

San Diego biotechnology company Cidara said it will receive a $7 million milestone payment from J&J's Janssen unit, which will assume responsibility for future development, manufacturing and commercialization activities of CD388.

Cidara, which had signed an influenza license and collaboration agreement with Janssen in 2021, said it is eligible to receive up to an additional $685 million in milestone payments under the deal, along with royalties on product sales.

Cidara shares, which closed Tuesday at 79.3 cents, were recently up 11% at 88 cents in premarket trading.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

09-06-23 0853ET