Stock Alert for BioSante Pharmaceuticals Inc. (BPAX)
  • Stock Alert for Achillion Pharmaceuticals Inc. (ACHN)
  • Stock Alert for Sunesis Pharmaceuticals Inc. (SNSS)
  • " />

    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
    May09-2011 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

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *