Cyclerion Out-Licenses Praliciguat to Akebia, Announces $18M Capital Raise

Cyclerion Therapeutics Inc CYCN has entered into an exclusive, global license agreement with Akebia Therapeutics Inc AKBA for the development and commercialization of praliciguat.
Under the terms of the agreement, Akebia will be solely responsible for the research, development, and commercialization of praliciguat globally.
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.
Cyclerion is also eligible to receive tiered, sales-based royalties ranging from single-digit to high-teen percentages.
Separately, Cyclerion has announced a private placement of approximately $18 million to a consortium of investors.
The Company will sell around 5.7 million shares at $3.12 per share.
"This capital, coupled with the praliciguat out-license announced today, reinforces our strategic focus in CNS and will accelerate the advancement of clinical studies for CY6463 and the further development of our next generation molecule, CY3018," said Peter Hecht, CEO.
Price Action: CYCN stock is up 4.02% at $3.36, and AKBA shares up 0.45% at $3.35 during the market session on the last check Friday.