Find out why these biotechnology firms surpassed market gains

Summary

• The Nasdaq composite index fell by 1% on Thursday.
• Cidara Therapeutics Inc. reported a revenue of US$7.6 million for Q2 2023.
• INmune Bio Inc. reported a net loss attributed to common stockholders of around US$6.5 million.

Biotechnology firms are generally recognized for their continuous innovation and growth trajectory. These companies generally work on cutting-edge technologies, offering substantial growth potential.

They also tackle critical health issues, making a positive impact on the healthcare sector. Another advantage offered by biotech companies is portfolio diversification. Biotech investments can diversify one’s portfolio, as they often operate independently of broader market trends.

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However, these stocks may come with high volatility and risks. With that, let us look at two biotechnology stocks that have outperformed the market on Thursday.

Cidara Therapeutics Inc. (NASDAQ: CDTX)

Cidara Therapeutics Inc is a biotechnology firm with a primary focus on researching, creating, and marketing new anti-infective solutions to combat and safeguard against diseases.

CDTX rose 1.78% on Thursday, beating Nasdaq composite index’s performance for the day. The broader market index, the Nasdaq composite, fell by less than 1% on Thursday.

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On October 13, 2023, Cidara revealed that a committee within the European Medicines Agency has issued a favorable stance on the company’s invasive candidiasis treatment drug.

The company earned US$7.6 million and US$33.6 million in revenue for the three and six months ending on June 30, 2023, respectively. This compares to US$6.2 million and US$13.3 million for the same periods in 2022.

As of June 30, 2023, Cidara had US$50.4 million in cash, cash equivalents. The net loss for the June 2023 quarter was US$12.4 million, which is a decrease from the net loss of US$13.1 million in the June 2022 quarter. 

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INmune Bio Inc. (NASDAQ: INMB)

INmune Bio Inc., a clinical stage biotechnology firm, has primary focus on creating novel immunotherapies designed to reset a patient's immune system, enabling it to combat cancer.

On Thursday, INMB was 0.54% higher at the close of trade. The company introduced Recent Biomarker and Feasibility Findings from phase 1b trial endorsing its Alzheimer's Disease treatment at the clinical trials on Alzheimer's Disease (CTAD) Conference.

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As per the release, dated October 17, 2023, the treatment indicated some positive results towards the treatment of the disease. For Q2 2023, INmune reported net loss attributed to common stockholders of around US$6.5 million, in contrast to US$6.8 million for the June 2022 quarter.  

In Q2 2023, the R&D costs came to about US$4.1 million, falling from US$4.2 million in Q2 2022. General and administrative expenditures were roughly US$2.3 million for Q2 2023, as opposed to approximately US$2.2 million for Q2 2022.