We are initiating coverage of Cyclerion Therapeutics, Inc. (CYCN) with a valuation of $8.00. Following a strategic relaunch as a neuropsychiatric therapeutics company, Cyclerion is initially targeting treatment-resistant depression (TRD) through CYC-126, a EEG-guided therapeutic platform designed to address the network-level dysfunction in these patients. A Phase 2 proof-of-concept study is scheduled to launch in the second half of 2026. It is designed to evaluate the safety and performance of the CYC-126 system, the ability to induce and maintain distinct EEG signatures, the antidepressant effects associated with slow-wave activity (SWA)- and burst suppression (BS)-targeted EEG signatures, and to identify the preferred EEG signature for use in future confirmatory randomized, controlled trials. While the TRD treatment landscape is increasingly crowded, Cyclerion is poised to differentiate itself through a novel combination of pharmacology, electrophysiology, and systems neuroscience.
