Korsana Completes Cyclerion Merger and $380 Million Raise
Cash and cash equivalents were about $456.2 million at September 30, 2026, which the company said should fund operations into 2029.
Korsana Biosciences, Inc. (KRSA), a biotechnology company developing therapies for neurodegenerative diseases, completed its merger with Cyclerion Therapeutics and a concurrent $380 million private placement in September 2026, and reported cash and cash equivalents of approximately $456.2 million as of September 30, 2026.
The company said it expects that cash to fund operations into 2029. President and Chief Executive Officer Jonathan Violin, Ph.D., said the third quarter was transformative, providing financial resources and an experienced leadership team to execute the company’s strategy.
Immediately before the merger closed, Korsana completed a $380 million private financing 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. Combined-company shares were expected to begin trading on the Nasdaq Capital Market on September 9, 2026, under the ticker KRSA.
Following the reverse stock split, private placement, and merger, Korsana had approximately 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 underlying equity awards. That count matched the figure the company gave at the September 8 closing announcement.
Cash and cash equivalents were $456.221 million as of September 30, 2026, compared with $154.135 million as of December 31, 2025. Total assets were $462.084 million at September 30, 2026, versus $154.596 million at December 31, 2025. Liabilities were $45.557 million, and convertible preferred stock and stockholders’ equity (deficit) was $416.527 million. At the September 8 closing announcement, post-transaction cash of approximately $475 million had been expected to fund operations into 2029.
Research and development expenses were $42.139 million for the three months ended September 30, 2026, versus $20.479 million a year earlier. The company said R&D expenses were $42.1 million for the third quarter of 2026, including $13.5 million of non-cash stock-based compensation. General and administrative expenses were $6.135 million, versus $1.478 million a year earlier, including $1.7 million of non-cash stock-based compensation. Total operating expenses were $48.274 million.
Net loss and comprehensive loss was $46.425 million for the three months ended September 30, 2026, versus $21.723 million a year earlier. The company said net loss totaled $46.4 million for the third quarter of 2026, including $15.2 million of non-cash stock-based compensation. Net loss per share attributable to common stockholders, basic and diluted, was $3.19, versus $39.49 a year earlier, on weighted-average shares of 13,525,610 versus 550,061. Other income was $1.849 million.
Korsana appointed Matthew Leoni, M.D., as Chief Medical Officer, Gan Wei, Ph.D., as Chief Technical Officer, and Heidi Henson as a director and Chair of the Audit Committee. The company is advancing KRSA-028, a next-generation THETA-enabled antibody targeting amyloid beta for Alzheimer’s disease, with Phase 1 healthy volunteer data expected in mid-2027 and interim proof-of-concept data in Alzheimer’s disease patients anticipated by year-end 2027 or the first quarter of 2028. Preclinical data for KRSA-028 were accepted for presentation at the Clinical Trials on Alzheimer’s Disease 2026 conference, including pharmacokinetic and hematologic parameters, binding affinity, and phagocytic activity, with a poster scheduled for November 18, 2026.
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