HHR Represents Cyclerion in Medicine Sale

May 2023 - The firm represented Cyclerion Therapeutics (NASDAQ: CYCN) in the company’s sale of the rights to two drugs used to treat Mitochondrial Encephalopathy, Lactic Acidosis, and Stroke-like episodes syndrome (MELAS) to a newly-formed company (NewCo).

In exchange for the two drugs, Cyclerion will receive $8 million in cash and 10% of the issued and outstanding shares of NewCo at the closing. Cyclerion CEO Peter Hecht and venture capital firm Invus participated in NewCo’s capitalization, in addition to Venrock, J Wood Capital and Sanofi Ventures.

“With this transaction, we believe these compounds will receive the focus they deserve, and Cyclerion shareholders will be able to benefit from future value creation via Cyclerion’s equity position in the new company,” said Errol De Souza, chair of the board at Cyclerion. After the closing of the transaction, NewCo will be solely responsible for developing and commercializing the two MELAS drugs, Zagociguat and CY3018.

Based in Boston and founded in 2018, Cyclerion is a clinical-stage biopharmaceutical company that develops and commercializes treatments for serious central nervous system diseases.

Gary Simon and Scott Naturman led the HHR team and Mark Schuber provided key assistance. The team also included Ken Lefkowitz, M. Shams Billah, Andy Braiterman, Katie Coleman, Chris Gartman, Jerry Harrison, Andrew Kopsidas, Gerold Niggemann, Charlie Wachsstock, Erin DeCecchis, Jenny Graham, Alexander Rahn, Sabrina Silverberg, Justin Cohen, Jiayin Liao, Lynn Russo, Gabrielle Gorelik, Travis Henry-Reid and Olivia Rose.