Korsana Biosciences has completed its previously announced merger with Cyclerion Therapeutics along with a $380 million private placement, creating a publicly traded biotechnology company focused on developing treatments for neurodegenerative diseases.
The combined company operates under the Korsana Biosciences name, with its shares beginning trading on the Nasdaq Capital Market under the ticker KRSA on September 9. Korsana expects to have approximately $475 million in cash and cash equivalents following the transaction, providing expected funding for operations into 2029.
Immediately before the merger closed, Korsana completed the $380 million financing led by Fairmount and Venrock Healthcare Capital Partners.
Other participating investors included General Atlantic, TCGX, Forbion, Wellington Management, Commodore Capital, RA Capital Management, RTW Investments, Vivo Capital, Janus Henderson Investors, Foresite Capital, J.P. Morgan Life Sciences Private Capital, SR One, Sanofi Ventures, Kalehua Capital and Spruce Street Capital, among others.
The financing consisted of common stock and pre-funded warrants. Together with Korsana’s existing cash, the proceeds are expected to fund operations through multiple clinical milestones for the company’s lead program, KRSA-028.
Under the merger terms, each outstanding Korsana common share was converted into the right to receive approximately 0.2074 shares of the combined company’s common stock, after accounting for a 1-for-7 reverse stock split of Cyclerion shares completed immediately before the merger.
Following the reverse split, private placement and merger, approximately 55.1 million shares and common stock equivalents of the combined company were outstanding.
Korsana’s lead asset, KRSA-028, is an investigational next-generation shuttled antibody targeting amyloid beta for Alzheimer’s disease.
The drug uses Korsana’s proprietary Therapeutic Targeting, or THETA, platform, which combines transferrin receptor and Fc engineering with the goal of improving drug delivery into the brain, safety and convenience.
Korsana expects Phase 1 healthy-volunteer data in mid-2027, followed by interim proof-of-concept data evaluating amyloid plaque clearance in Alzheimer’s patients by year-end 2027 or the first quarter of 2028.
KEY QUOTE:
“Today marks the beginning of an exciting new chapter for Korsana. With an exceptional team, a strong financial foundation supported by leading biotechnology investors, and a pipeline of differentiated therapeutic candidates, we are well positioned to execute on our long-term vision,” said Jonathan Violin, Ph.D., Korsana’s President and Chief Executive Officer. “As we advance KRSA-028 toward the clinic, we remain focused on our mission to reduce the burden of neurodegenerative diseases by bringing forward innovative therapies for patients and caregivers.”
Jonathan Violin, Ph.D., President and Chief Executive Officer of Korsana Biosciences
