(RTTNews) - Shares of Cyclerion Therapeutics, Inc. (CYCN) are up over 160% in pre-market trading after the company announced an all-stock merger agreement with privately held Korsana Biosciences, a biotechnology company developing next-generation therapies for neurodegenerative diseases.
Cyclerion and Korsana have entered into a definitive merger agreement under which the combined company will operate as Korsana Biosciences, Inc. and trade on Nasdaq under the ticker symbol KRSA upon closing. The transaction is expected to close in the third quarter of 2026, pending shareholder approvals and customary regulatory conditions.
Korsana's Lead Program and Financing
Korsana's lead asset, KRSA-028, is a next-generation shuttled monoclonal antibody targeting amyloid beta for the treatment of Alzheimer's disease, discovered in partnership with Paragon Therapeutics. The program is designed to improve brain delivery, reduce amyloid-related imaging abnormalities, and enable low-volume subcutaneous dosing.
To support the merger, Korsana has secured commitments for an oversubscribed $380 million private financing, led by Fairmount and Venrock Healthcare Capital Partners, with participation from General Atlantic, TCGX, Forbion, and others. The financing is expected to close immediately prior to the merger.
The combined company's cash position at closing is expected to fund operations into 2029, supporting multiple clinical milestones, including:
- Phase 1 healthy volunteer data for KRSA-028 in mid-2027.
- Interim proof-of-concept data in Alzheimer's patients expected by the end of 2027.
Ownership Structure and Leadership
Upon closing, pre-merger Cyclerion shareholders will own approximately 1.5% of the combined company, while Korsana shareholders and new investors will own about 98.5%, subject to adjustments based on Cyclerion's net cash at closing.
The combined company will be led by Jonathan Violin, Ph.D., Korsana's current President and CEO. Korsana's existing board will assume leadership of the merged entity, chaired by Tomas Kiselak of Fairmount.
Cyclerion CEO Regina Graul, Ph.D., said the merger is the result of a comprehensive strategic review and represents the best path forward for Cyclerion shareholders.
CYCN has traded between $1.02 and $3.79 over the past year. The stock closed Tuesday's trading at $1.55, up 7.27%. In the pre-market the stock is at $4.00 up 160%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
