Why Did Cyclerion Therapeutics Stock Surge Nearly 50% After-Hours Today?

Cyclerion Therapeutics shares jumped 47% in after-hours trading on Tuesday, placing it among the session’s top five U.S. gainers, after the company said it will relaunch with a focus on developing therapies for neuropsychiatric conditions.

The plan is supported by a new licensing agreement with the Massachusetts Institute of Technology (MIT) covering intellectual property that will form the basis of its research programs.

The company stated its lead program is for treatment-resistant depression (TRD) and is a combination of anesthetic agents with a proprietary delivery system to restore connectivity between regions of the brain. A Phase 2 proof-of-concept trial is expected to commence in 2026 with data anticipated in 2027.

Cyclerion was spun out of Ironwood Pharmaceuticals in 2019. It raised $175 million in private investment to develop its soluble guanylate cyclase (sGC) stimulator programs. 

As part of its strategic shift since then, the company sold zagociguat and CY3018 to Tisento in 2023, out-licensed praliciguat in 2021, and entered into a license option agreement for olinciguat in 2024.

“This relaunch represents a pivotal moment for Cyclerion Therapeutics as we refocus our efforts on advancing breakthrough neuropsychiatric treatments for patients who have limited therapeutic options today,” said Errol DeSouza, Chairperson of Cyclerion’s Board of Directors.

CEO Regina Graul said the company plans to expand into additional neuropsychiatric diseases as it builds a pipeline of novel therapies.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid an 842% surge in 24-hour message volume. One bullish user called Cyclerion a strong candidate for a squeeze when regular trading resumes on Wednesday. 

Another user stated that they had been accumulating shares over the past year, citing the MIT licensing deal as validation of the company’s potential and predicting a market cap of $100 million if further announcements follow.

Cyclerion Therapeutics’ stock has declined 6.2% so far in 2025.

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