Cyclerion Therapeutics Completes $24 Million Private Placement
July 31, 2020
Cyclerion Therapeutics, the Ironwood Pharmaceuticals spin-out established in early 2019 to develop therapies targeting deficient nitric oxide signaling involved in a wide range of diseases, said it raised $24 million in a private placement of its common stock to Slate Path Capital and Pappas Capital.
Cyclerion’s pipeline has five sGC stimulator programs, including olinciguat, an experimental sGC in phase 2 studies for sickle cell disease, a genetic blood disorder affecting hemoglobin, a protein in red blood cells that carries oxygen throughout the body.
The new capital is the first financing since Cyclerion’s launch funding and will be used to accelerate the advancement of clinical studies in its two priority areas, central nervous system and sickle cell disease. The company is preparing for rapid further development of olinciguat in sickle cell disease should the upcoming phase 2 data support that investment; and developing IW-6463 in two diseases: mitochondrial encephalomyopathy, lactic acidosis and stroke-like episodes (MELAS) and Alzheimer’s disease with vascular pathology, for which translational pharmacology readout is expected in late summer.
“We believe that each of these programs has the potential to transform the lives of patients with very serious diseases and we look forward to the trial readouts in both programs over the next several months.” said Peter Hecht, CEO of Cyclerion.
In the private placement, the Cyclerion sold 6,062,500 shares of common stock at a price of $4.00 per share.
Author: Rare Daily Staff
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