Tisento Therapeutics, Inc., a Cambridge, MA-based developer of novel medicines to treat diseases with significant unmet medical needs, is launching with an $81m Series A financing.
Tisento also announced the closing of the previously disclosed asset purchase agreement with Cyclerion Therapeutics, Inc. (Nasdaq: CYCN). In the transaction, the company acquired zagociguat and CY3018, a CNS-targeted sGC stimulator in IND-enabling studies, from Cyclerion. Cyclerion received 10% equity ownership in Tisento with anti-dilution protection through $100m in post-money valuation, as well as the right to purchase additional Tisento equity in the future. In addition, Cyclerion received a $10.4m cash payment, consisting of an $8m upfront payment and reimbursement for certain employee and development expenses related to zagociguat and CY3018 for the period between the signing and closing of the transaction. In conjunction with the asset sale, Tisento CEO Peter Hecht invested $5m in Cyclerion. Cyclerion received equity ownership in Tisento and upfront cash payment.
Backers in the Series A included Major Cyclerion shareholders such as Invus, Peter Hecht, Polaris, and others. They were joined by Sanofi Ventures, Venrock, J. Wood Capital, and others.
The company intends to use the funds for the development of the Phase 2 soluble guanylate cyclase (sGC) stimulator zagociguat in MELAS and other genetic mitochondrial diseases, as well as the advancement of additional assets for serious diseases with unmet need.
FinSMEs
01/08/2023