Cyclerion Therapeutics updates on strategic growth, leveraging sGC assets, reducing expenses, and progressing with asset evaluations and agreements.
Quiver AI Summary
Cyclerion Therapeutics, Inc. has provided an update on its strategic initiatives aimed at facilitating the company's growth. The company is focusing on monetizing its soluble guanylate cyclase (sGC) stimulator assets to generate immediate revenue, which will help support its plans without causing immediate dilution for shareholders. Cyclerion has negotiated an amendment to its license agreement with Akebia for the systemic sGC stimulator praliciguat, resulting in a $1.75 million upfront payment to Cyclerion and the transfer of certain intellectual property costs to Akebia. The company has also entered a license option agreement for its vascular sGC stimulator olinciguat with CVCO Therapeutics, which will cover ongoing IP expenses. Additionally, Cyclerion previously announced the sale of its CNS assets zagociguat and CY3018 to Tisento Therapeutics. Overall, Cyclerion is positioning itself for future growth by seeking new assets in the central nervous system space while reducing expenses and establishing potential revenue streams.
Potential Positives
- Announcement of $1.75 million in upfront and near-term payments from Akebia as part of the renegotiated license agreement for praliciguat, providing immediate cash flow.
- Potential for up to approximately $560 million in future milestone payments from Akebia, indicating significant long-term revenue potential.
- Exclusive license option agreement for olinciguat with CVCO Therapeutics, which could lead to additional revenue stream and strategic collaboration.
- Successful strategic initiatives to monetize historical assets, positioning the company to acquire new central nervous system (CNS) assets to rebuild its pipeline.
Potential Negatives
- Relying on legacy assets for near-term revenue could indicate that the company lacks innovative new products, potentially undermining long-term growth prospects.
- The need to raise capital may suggest potential financial instability or limited cash reserves, which could be a concern for investors.
- The press release's heavy emphasis on forward-looking statements and associated risks could signal uncertainty about the company's future performance and strategic direction, which may decrease investor confidence.
FAQ
What recent agreements has Cyclerion announced?
Cyclerion has updated its exclusive license agreement for praliciguat with Akebia and entered an option agreement for olinciguat with CVCO Therapeutics.
How will these agreements benefit Cyclerion?
The agreements will generate near-term revenues for Cyclerion, reduce operating expenses, and support the development of new assets in the CNS space.
What is the financial impact of the praliciguat agreement?
Cyclerion will receive $1.75 million in upfront payments and potential future milestone payments of up to $560 million for praliciguat.
What is Cyclerion's strategy moving forward?
Cyclerion aims to leverage its legacy assets while focusing on acquiring new CNS assets to rebuild its pipeline and enhance shareholder value.
What is Cyclerion's approach to forward-looking statements?
Cyclerion uses forward-looking statements to clarify future goals and potential risks, cautioning that actual results may differ significantly from projections.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CYCN Insider Trading Activity
$CYCN insiders have traded $CYCN stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $CYCN stock by insiders over the last 6 months:
- PATH CAPITAL LP SLATE sold 357,880 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CYCN Hedge Fund Activity
We have seen 1 institutional investors add shares of $CYCN stock to their portfolio, and 9 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ARTAL GROUP S.A. removed 117,643 shares (-100.0%) from their portfolio in Q3 2024
- FMR LLC removed 3,783 shares (-2.3%) from their portfolio in Q3 2024
- UBS GROUP AG removed 2,561 shares (-94.6%) from their portfolio in Q3 2024
- ROYAL BANK OF CANADA removed 416 shares (-100.0%) from their portfolio in Q3 2024
- TOWER RESEARCH CAPITAL LLC (TRC) removed 386 shares (-26.4%) from their portfolio in Q3 2024
- BLACKROCK, INC. removed 372 shares (-2.2%) from their portfolio in Q3 2024
- GEODE CAPITAL MANAGEMENT, LLC removed 70 shares (-0.2%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
CAMBRIDGE, Mass., Dec. 17, 2024 (GLOBE NEWSWIRE) -- Cyclerion Therapeutics, Inc. (Nasdaq: CYCN), today announced an update on its progress in catalyzing the Company’s next stage of growth. The Company is leveraging its legacy soluble guanylate cyclase (sGC) stimulator assets to generate near-term revenues which will be used to implement its strategic building plan without near-term dilution.
“These agreements demonstrate Cyclerion’s progress in maximizing its legacy asset value while redirecting resources toward acquiring potential new assets,” said Regina Graul, Ph.D., President and Chief Executive Officer of Cyclerion. “These newly finalized agreements, combined with our significant reduction of operating expenses, enable the focused use of our capital to support our anticipated pipeline build in the central nervous system (CNS) space. Concurrently, we plan to raise capital, as needed, to fund our product plans to create value for shareholders and patients.” Graul continued, “Cyclerion’s diligence team, comprised of committed external experts in their respective fields, is currently in advanced stages of conducting promising asset evaluations, which we believe have the potential to be the new foundation for Cyclerion.”
Cyclerion and Akebia have re-negotiated a mutually beneficial amendment to their exclusive license agreement for praliciguat, a systemic sGC stimulator. Under the new license amendment with Akebia, Cyclerion will receive $1.75 million in upfront and near-term payments. In addition, Akebia will assume responsibility for all intellectual property expenses associated with praliciguat after Q1 2025. In 2021, Akebia paid a $3.0 million upfront payment to the Company upon signing of the license agreement, and the Company is eligible to receive additional milestone cash payments of up to approximately $560 million in total potential future development, regulatory, and commercialization milestone payments for praliciguat. In exchange for a reduction in certain development milestone payments, Cyclerion is eligible to receive certain higher, tiered, sales-based royalties ranging from mid-single-digits to twenty percent.
Cyclerion has also entered into an exclusive license option agreement for its vascular sGC stimulator, olinciguat, with a separate entity, wholly controlled by CVCO Therapeutics, Inc., a clinical stage company focused on microvascular dysfunction in cardiovascular, inflammatory and metabolic disease states. Under the terms of the agreement, the potential partner has exclusive rights to evaluate olinciguat during the option period. During the option period, the grantee has assumed responsibility for all ongoing intellectual property-related expenses associated with olinciguat.
As part of its strategic initiatives, Cyclerion
previously announced
a definitive agreement for the sale of its CNS assets zagociguat and CY3018 to Tisento Therapeutics in May 2023 for an $8 million cash payment and a 10% equity stake in Tisento. The amended agreement for praliciguat, and if the option for olinciguat is exercised, would represent the likely final steps in the monetization of Cyclerion’s historical portfolio. Cyclerion believes it is well positioned for the next phase in its overall strategy, to bring in new CNS assets to rebuild the pipeline.
Forward Looking Statement
Certain matters discussed in this press release are “forward-looking statements”. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should”, “positive”, or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements in this press release include, but are not limited to, statements about pursuing collaborations, licenses, mergers, acquisitions and/or other targeted investments aimed at enhancing shareholder value. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. Actual performance and results may differ materially from those projected or suggested in the forward-looking statements due to various risks and uncertainties, including, those under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 5, 2024 as well as other risks and uncertainties which may be described in any subsequent quarterly report on Form 10-Q filed by the Company and the other reports the Company files with the SEC. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
