Stock To Watch: Cyclerion Therapeutics (CYCN)

(RTTNews) - Shares of Cyclerion Therapeutics, Inc. (CYCN), which slumped nearly 80% to $2.75 last October, following the failure of two phase II studies of Praliciguat, have since gained 60%.

Spun out of Ironwood Pharmaceuticals (IRWD), Cyclerion Therapeutics is a clinical-stage biopharmaceutical company focused on the development of soluble guanylate cyclase (sGC) stimulators for the treatment of serious and orphan diseases.

The Company has three product candidates in clinical development - Olinciguat, Praliciguat and IW-6463.

-- Olinciguat is under a phase II study in patients with sickle cell disease, dubbed STRONG SCD. Data readout from this study is expected in mid-2020.

-- Praliciguat, proposed for the treatment of diabetic nephropathy.

Last October, the Company reported data from two phase II trials of Praliciguat - one in the indication of diabetic nephropathy and the other in patients with heart failure with preserved ejection fraction (HFpEF). The two trials did not meet their respective primary endpoints.

While the Company has discontinued the development of Praliciguat in HFpEF, it believes in the potential of that compound to be a first-in-category treatment for patients with diabetic nephropathy. Even though the Diabetic Nephropathy study did not reach statistical significance, positive trends on primary and secondary endpoints were observed, according to Cyclerion.

The Company website reveals that it is pursuing the out-license of Praliciguat for late-stage development and commercialization in Diabetic Nephropathy.

-- IW-6463, under a translational pharmacology study in approximately 24 elderly subjects is ongoing. This study will evaluate the safety, PK, and measures of CNS pharmacological activity, including cerebral blood flow by MRI and additional translational measures. Topline study results are expected in mid-2020.

The Company ended September 30, 2019, with cash and cash equivalents of $117 million.

CYCN has traded in a range of $1.69 to $22.85 in the last 1 year. As of this writing, the stock is at $4.43, up 3.99%.