Cyclerion Therapeutics Inc (CYCN) | And We Have Deal, Up 30%.
It’s always nice to see a small biotech-startup announce a partnership deal. It’s pretty much what we live and die for, over the past decade. While it’s been sporadic trading for the past year, it’s doubled in the past month, a $70 million gain in market cap. Running low on cash and still early in FDA trial work, Cyclerion got a lifebuoy thrown to them by Akebia Therapeutics Inc (NASDAQ: AKBA) for the development and commercialization of praliciguat.
Interestingly the company, announced the failure of its drug candidate praliciguat in meeting the primary endpoints in two separate clinical studies in November which crashed the stock from $8 to $2. This is worth studying, they have another drug olinciguat for the treatment of patients with sickle cell disease a $5 billion market.
Cyclerion is eligible to receive up to $225 million in pre-commercial milestones, including up to $15 million in the first 18 months. Total potential future milestone payments could result in up to $585M. Remembering, this is NOT an approved drug. Just an approved partner!
They also just announced a direct private sale of approximately $18 million (@$3.12) of Cyclerion shares of common stock to EcoR1 Capital, LLC, Slate Path Capital LP, MFN Partners, LP, Invus, Peter Hecht, Ph.D., Lincoln Park Capital Fund, LLC and Polaris Partners. Nice crowd.
In fact, we think we’ll add it to the Biotech Stock Review Watch List at today’s open of $3.75.
