Cyclerion Therapeutics Inc. (NASDAQ: CYCN) stock declined by 1.25% at the last close while the CYCN stock price gains by 15.56% in the pre-market trading session. Cyclerion Therapeutics is a clinical-stage biopharmaceutical firm dedicated to developing therapies that help people regain cognitive function. Cyclerion is developing CNS-penetrant, first-in-class sGC stimulators that control a crucial node in a basic CNS signaling circuit.
For the development and marketing of praliciguat, an oral sGC stimulator, CYCN has signed an exclusive worldwide licensing deal with Akebia Therapeutics, a major biopharmaceutical firm focused on kidney disease.
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Akebia has secured an exclusive license to study, develop, and market praliciguat internationally under the terms of the contract, and will be entirely responsible for these efforts going forward. Cyclerion is eligible for pre-commercial milestone payments of up to $225 million, including up to $15 million in the first 18 months. Up to $585 million in future research, regulatory, and commercialization milestone payments might be made. Cyclerion is also eligible for sales-based royalties ranging from the single digits-to the high-teens.
Peter Hecht, Chief Executive Officer of Cyclerion commented:
CYCN is delighted to license praliciguat to Akebia, whose established expertise in kidney disease, as well as strong R&D and commercialization capabilities, make it a perfect partner for praliciguat’s future development. This deal gives Cyclerion a significant stake in any potential near- and long-term wealth creation, allowing them to focus on their objective of developing therapies for cognitive impairment, including their key assets CY6463 and CY3018, both of which have shown tremendous clinical promise.
CYCN revealed a direct private sale of nearly $18 million of Cyclerion common stock to EcoR1 Capital, Slate Path Capital, MFN Partners, Invus, Peter Hecht, Lincoln Park Capital Fund, and Polaris Partners.
Peter Hecht, CEO of Cyclerion stated:
CYCN is grateful for the continued support of this prestigious group of investors. This funding, together with the praliciguat out-license announced today, reaffirms their strategic emphasis on CNS and will help them go on with clinical trials for CY6463 and the development of their next-generation drug, CY3018. CY6463 is now being tested in clinical trials for a variety of neurological illnesses linked with cognitive impairment, an unmet medical need for which CYCN thinks CY6463 has the potential to provide significant therapeutic benefit.