Korsana Completes Cyclerion Merger and $380 Million Raise
The combined company said post-transaction cash of about $475 million is expected to fund operations into 2029.
Korsana Biosciences (KRSA), a biotechnology company developing therapies for neurodegenerative diseases, completed its previously announced merger with Cyclerion Therapeutics and a $380 million private placement, creating a public company with a cash runway the company said should last into 2029.
Immediately before the September 8 closing, Korsana raised $380 million in gross proceeds from a syndicate led by Fairmount and Venrock Healthcare Capital Partners, with participation from 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, Spruce Street Capital, and other firms. The financing included common stock and pre-funded warrants.
The combined company is expected to trade on the Nasdaq Capital Market under the ticker KRSA. Each outstanding Korsana share converted into the right to receive about 0.2074 shares of the combined company, adjusted for a 1-for-7 reverse stock split of Cyclerion common stock effected just before the merger. After the split, the placement, and the merger, the company said there were about 55.1 million shares of common stock and common stock equivalents outstanding, including shares underlying pre-funded warrants and Series B convertible preferred stock, and excluding shares under equity awards.
Post-transaction cash and cash equivalents of approximately $475 million, on a pro forma basis as of June 30, 2026, and including the private placement net of projected deal costs, are expected to fund operations into 2029, including through multiple clinical milestones for the lead program.
Korsana had already been spending as it built out. Cash and cash equivalents were $121.2 million as of June 30, 2026, down from $154.1 million at December 31, 2025. The company reported no product sales revenue and had incurred significant operating losses and negative cash flows from operations since inception.
In the three months ended June 30, 2026, research and development expense was $15.5 million, versus $154 thousand in the year-ago quarter. General and administrative expense was $2.9 million, versus $68 thousand a year earlier. Net loss was $17.4 million, versus $152 thousand in the year-ago quarter.
For the six months ended June 30, 2026, net loss was $30.9 million, versus $225 thousand in the year-ago six months. Net cash used in operating activities was $30.0 million, versus $333 thousand a year earlier. Accumulated deficit was $66.6 million as of June 30, 2026, versus $35.7 million at year-end 2025.
Management expected existing cash, primarily from Series Seed and Series A convertible preferred stock financings, together with $380.0 million received from the merger and pre-closing financing, to be sufficient to fund operating plans for at least twelve months from the date the condensed financial statements were available to be issued.
KRSA-028 is an investigational next-generation shuttled antibody targeting amyloid beta for Alzheimer’s disease. Korsana is advancing KRSA-028 toward the clinic, with Phase 1 healthy-volunteer data expected in mid-2027 and interim proof-of-concept data evaluating amyloid plaque clearance in Alzheimer’s patients anticipated by the end of 2027 or the first quarter of 2028.
KRSA-028 uses the proprietary Therapeutic Targeting (THETA) platform, which combines clinically validated transferrin receptor and Fc engineering and is designed to improve brain delivery, safety, and convenience. THETA was developed in partnership with Paragon Therapeutics.
President and Chief Executive Officer Jonathan Violin said the company is advancing KRSA-028 toward the clinic and remains focused on reducing the burden of neurodegenerative diseases.