Cyclacel Pharmaceuticals Inc. (CYCC)

Cyclacel Pharmaceuticals (CYCC) is a development-stage biopharmaceutical company engaged in the discovery, development and commercialization of mechanism-targeted drugs to treat human cancers and other serious disorders. The Company focuses primarily on the development of orally available anticancer agents that target the cell cycle with the aim of slowing the progression or shrinking the size of tumors. Sapacitabine (CYC682), a cell cycle modulating nucleoside analog, is in phase III development for the treatment of acute myeloid leukemia in the elderly under a Special Protocol Assessment agreement with the U.S. Food and Drug Administration, and in phase II studies for myelodysplastic syndromes and lung cancer.  Seliciclib (CYC202 or R-roscovitine), a CDK (cyclin dependent kinase) inhibitor, is in phase II studies for the treatment of lung cancer and nasopharyngeal cancer and in a phase  I trial in combination with sapacitabine.  CYCC’s ALIGN Pharmaceuticals subsidiary markets directly in the United States Xclair Cream for radiation dermatitis, Numoisyn Liquid and Numoisyn Lozenges for xerostomia.The Company was incorporated in 1996 and is headquartered in Berkeley Heights, New Jersey, with a research facility located in Dundee, Scotland.

Share Statistics (09-May-11) FY 












Symbol CYCC Revenue, $Mn 0.91 0.69 -24.2% 0.19 0.14 -26.3%
Current price $1.62 Gross marg. 39.6% 37.7% -4.8% 78.9% 21.4% -78.9%
52wk Range: $1.20-$2.40 Oper. margin -2371.1% -2489.1%
Avg Vol (3m): 4,501,787 Net margin -2150.5% -2321.7% 8.0% -2284.2% -2264.3% -0.9%
Market Cap. 75.49M
Shares Outstanding 46.60M EPS, $ -0.93 -0.52 -44.1% -0.19 -0.07 -63.2%

Source:, SEC Filings.

Investment Highlights

CYCC shares went up on Monday amid expectations of results at this year’s American Society of Clinical Oncology (ASCO) meeting. Eisai Co. is scheduled to report results from its DACO-016 phase III study of Dacogen (decitabine) as a frontline treatment for elderly patients with acute myelogenous leukemia (AML). CYCC’s sapacitabine shares a similar therapeutic indication.

In January of this year, CYCC launched enrollment of the SEAMLESS pivotal phase III trial, evaluating sapacitabine oral capsules as a front-line treatment in elderly patients aged 70 years or older with newly-diagnosed AML who are not candidates for intensive induction chemotherapy.  The study is being conducted under a Special Protocol Assessment (SPA) agreement that the Company reached with the U.S. FDA. The trial builds on promising one-year survival observed in elderly patients aged 70 years or older with newly diagnosed AML or AML in first relapse enrolled in a phase II study of single agent sapacitabine.

The study is designed to demonstrate an improvement in overall survival of either of two pairwise comparisons: (1) Arm A versus Arm C or (2) Arm B versus Arm C.  In Arm A sapacitabine is administered in alternating cycles with decitabine, in Arm B sapacitabine is administered alone and in Arm C decitabine is administered alone.

CYCC chose decitabine as an active control arm as it is one of the treatment options recommended by the National Comprehensive Cancer Network’s Clinical Practice Guidelines, said Judy Chiao M.D., CYCC VP of clinical development and regulatory affairs.

Sapacitabine has been given an orphan drug status by the U.S. FDA for the treatment of both AML and myelodysplastic syndromes (MDS).

In other news, the Company is scheduled to release its first quarter 2011 financial results on May 12.

Shares of CYCC gained 14.89% to close Monday at $1.62. Approximately 4.50 million shares have traded hands during the session, versus the 10-day average volume of 659.83K.  In the past 52 weeks, shares of CYCC have traded between a low of $1.20 and a high of $2.40. CYCC is currently above its 50-day moving average of $1.37 and above its 200-day moving average of $1.49. At Monday’s closing market price, the market capitalization of the Company stands at $75.49 million.

Visit CYCC at

Financial Summary

CYCC reported a net loss for the fourth quarter of 2010 of $3.4 million, or $0.07 per basic and diluted share, compared to a net loss of $4.6 million, or $0.19 per basic and diluted share, for the fourth quarter of 2009. Total research and development (R&D) expenses in the fourth quarter of 2010 were $1.4 million compared to $2.6 million in the fourth quarter of 2009. The decrease in R&D expenses in the fourth quarter of 2010 compared to the fourth quarter of 2009 was primarily related to costs associated with sapacitabine capsules for clinical trials, which were manufactured in the fourth quarter of 2009. Total selling, general and administrative expenses (SG&A) amounted to $2.0 million in the fourth quarter of 2010 compared to $1.8 million for the fourth quarter of 2009. The increase is primarily due to increased stock-based compensation costs, consultancy and other professional costs.

For the year ended December 31, 2010, the Company reported a net loss of $19.7 million, or $0.52 per basic and diluted share, compared to a net loss of $20.8 million, or $0.94 per basic and diluted share, for the year ended December 31, 2009. Total net sales of Xclair Cream and Numoisyn products were $0.6 million in 2010 compared to $0.9 million in 2009. The decrease in product revenue for 2010 was due to higher than anticipated product returns of approximately $0.2 million, related to expiring product with a two-year shelf-life that were previously sold into the marketplace. Total R&D expenses for the year ended December 31, 2010, were $6.4 million compared to $9.8 million for the year ended December 31, 2009. Of the total R&D expense reduction of $3.4 million, approximately $1.7 million was attributable to the completion of clinical programs, other than sapacitabine, and approximately $1.6 million was related to costs associated with sapacitabine capsules for clinical trials which were manufactured in the fourth quarter of 2009.

As of December 31, 2010, cash and cash equivalents totaled $29.5 million. The Company expects that its cash resources are sufficient to meet anticipated short-term working capital needs and fund on-going sapacitabine clinical trials for at least the next twelve months.


Financial Strength (09-May-2011) Company Industry Sector S&P 500
Quick Ratio (MRQ) 4.72 1.52 1.73 0.61
Current Ratio (MRQ) 4.75 1.93 2.13 0.93
LT Debt to Equity (MRQ) 0.00 14.05 16.20 93.78
Total Debt to Equity (MRQ) 0.00 17.42 21.06 143.31
Interest Coverage (TTM) -83.58 3.24 1.79 16.74

Source:, SEC Filings.

Analyst Consensus

This is the consensus forecast among two polled investment analysts. Against the Cyclacel Pharmaceuticals Inc company.

Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
Latest 1 1 0 0 0 0
4 weeks ago 1 1 0 0 0 0
2 months ago 1 1 0 0 0 0
3 months ago 1 1 0 0 0 0
Last year 2 0 0 0 0 0

The two analysts offering 12-month price targets for CYCC have a median target of 4.75, with a high estimate of 7.00 and a low estimate of 2.50. The median estimate represents a 236.88% increase from the last price of 1.41.


Consensus Estimates Analysis

# of Estimates Mean High Low 1 Year Ago
SALES (in millions)
Quarter Ending Jun-11 2 0.18 0.21 0.15
Quarter Ending Sep-11 2 0.53 0.84 0.22
Year Ending Dec-11 2 1.44 1.97 0.90 3.00
Year Ending Dec-12 2 4.64 5.90 3.38 6.10
EARNINGS (per share)
Quarter Ending Jun-11 2 -0.09 -0.09 -0.10
Quarter Ending Sep-11 2 -0.09 -0.08 -0.11
Year Ending Dec-11 2 -0.38 -0.33 -0.43 -0.65
Year Ending Dec-12 2 -0.39 -0.39 -0.39 -0.63

Technical Analysis


CYCC is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.  The MACD for CYCC currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name Ticker Price per Mrkt. Cap. P/E P/S
May-09-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
Eli Lilly & Co. LLY 38.55 42.87B 9.03 10.39 1.83 1.95
Pfizer Inc. PFE 20.60 164.70B 9.20 9.04 2.46 2.62
Merck & Co. Inc. MRK 36.48 112.47B 9.81 9.52 2.39 2.42
Sunesis Pharmaceuticals Inc. SNSS 2.48 114.15M n/a n/a n/a n/a
Biotechnology Median 19.28 n/a 9.32 n/a
Cyclacel Pharmaceuticals Inc. CYCC 1.62 75.49M n/a n/a 52.42 16.27

Source: Thomson Financial

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