Cyclerion renegotiated the Praliciguat licensing agreement to obtain upfront and near-term payments and entered into a licensing option agreement for Olinciguat

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 revenue that will be used to implement its near-term undiluted strategic construction plan.

“These agreements demonstrate Cyclerion’s progress in maximizing the value of its existing assets while redirecting resources toward the acquisition of potential new assets,” said Regina Graul, Ph.D., President and CEO of Cyclerion. “These newly finalized agreements, combined with our significant reduction in operating expenses, enable targeted use of our capital to support the planned buildout of our central nervous system (CNS) pipeline. At the same time, we plan to raise capital, if necessary, to finance our product projects to create value for shareholders and patients. Graul continued: “Cyclerion’s diligence team, comprised of external experts engaged in their respective fields, is currently at an advanced stage of completing promising asset valuations, which we believe have the potential to become Cyclerion’s new base.

Cyclerion and Akebia have renegotiated a mutually beneficial amendment to their exclusive licensing agreement for praliciguat, a systemic sGC stimulator. As part of the new license amendment with Akebia, Cyclerion will receive $1.75 million in upfront and near-term payments. Additionally, Akebia will assume responsibility for all intellectual property expenses associated with praliciguat after the first quarter of 2025. In 2021, Akebia made an upfront payment of $3.0 million to the Company upon signing of the agreement license, and the company is eligible to receive additional cash payments. of up to approximately $560 million in potential potential 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 a single-digit range to twenty percent.

Cyclerion also entered into an exclusive license option agreement for its sGC vascular stimulator, olinciguat, with a separate entity, fully controlled by CVCO Therapeutics, Inc., a clinical-stage company focused on microvascular dysfunction in cardiovascular, inflammatory and and metabolic. Under the terms of the agreement, the potential partner has the exclusive right to evaluate olinciguat during the option period. During the option period, the grantee assumed responsibility for all ongoing intellectual property expenses associated with olinciguat.

As part of its strategic initiatives, Cyclerion previously announced a definitive agreement to sell its assets CNS zagociguat and CY3018 to Tisento Therapeutics in May 2023 for a cash payment of $8 million and a 10% interest 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 historic portfolio. Cyclerion believes it is well positioned for the next phase of its overall strategy, bringing in new CNS assets to rebuild the pipeline.

Forward-looking statement

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