WALTHAM, Mass. — Cyclerion Therapeutics Inc. and Korsana Biosciences Inc. have entered into a definitive agreement to merge in an all-stock transaction, creating a combined company focused on developing treatments for neurodegenerative diseases.
Following the deal, the combined entity will operate under the name Korsana Biosciences Inc. and is expected to trade on Nasdaq under the ticker symbol “KRSA.” The transaction is anticipated to close in the third quarter of 2026, subject to shareholder approval and other customary conditions.
The merger is backed by an oversubscribed private investment expected to generate approximately $380 million in gross proceeds. The financing, led by Fairmount and Venrock Healthcare Capital Partners, includes participation from several major investment firms and is expected to fund operations through 2029, including multiple clinical milestones.
“Korsana is determined to deliver breakthrough medicines for patients suffering from neurodegenerative disorders. With our seasoned team and support from leading biotechnology investors, Korsana is well-positioned to advance a pipeline of innovative, next generation therapies,” said Jonathan Violin, Ph.D., Korsana’s President and Chief Executive Officer. “Patients deserve better options than what is currently available, and we believe our lead program KRSA-028 can deliver a best-in-class product to treat Alzheimer’s disease. We are also building a broader pipeline leveraging our proprietary platform to target other devastating neurodegenerative disorders.”
Korsana’s lead drug candidate, KRSA-028, is a next-generation monoclonal antibody targeting amyloid beta, a key protein associated with Alzheimer’s disease. The therapy is designed to improve delivery to the brain and enhance plaque clearance while reducing side effects commonly seen in similar treatments. Early clinical milestones include Phase 1 data in healthy volunteers expected in mid-2027 and interim data on amyloid plaque reduction in patients by the end of 2027.
The company’s broader pipeline is based on its proprietary platform designed to improve drug delivery across the blood-brain barrier and address limitations of existing therapies.
Cyclerion said the merger follows a strategic review process aimed at identifying the best path forward for its business.
“Our transaction with Korsana is the result of a comprehensive strategic review, and we believe it represents the best path forward for Cyclerion,” said Regina Graul, Ph.D., President and Chief Executive Officer of Cyclerion. “Korsana’s promising and innovative pipeline targeting neurodegenerative disorders, beginning with Alzheimer’s disease, provides the potential for significant value creation for Cyclerion’s shareholders.”
Under the terms of the agreement, Cyclerion shareholders are expected to own approximately 1.5% of the combined company, while Korsana shareholders, including new investors, will hold about 98.5%.
The combined company will be led by Violin, with Korsana’s current board expected to take over governance following the merger. The board will be chaired by Tomas Kiselak, Founding Partner at Fairmount, and include representatives from Venrock Healthcare Capital Partners and Wellington Management, among others.
The companies said the deal positions the combined organization to advance a pipeline of therapies targeting Alzheimer’s disease and other neurodegenerative conditions with significant unmet medical need.
