UPDATE! Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) Blasts Through $6 Ceiling on Pre-Clinical Results

Cyclacel Pharmaceuticals Inc (Nasdaq:CYCC)

UPDATE!

 

On Monday SNU published the article below in which we observed the trouble that CYCC shares have had staying over the $6 price level. Today CYCC shares gapped up to open at $7.95 and reached a high of $10.90 on massive volumes. At the current pace, CYCC shares will trade over 140 times their average daily volume.

 

The stunning price and volume action comes after Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) announced positive pre-clinical trial data demonstrating therapeutic potential of CYC065, Cyclacel’s second-generation, cyclin-dependent kinase (CDK) 2/9 inhibitor, as a targeted anti-cancer agent. The data show that CYC065 substantially inhibited growth, triggered apoptosis, and induced anaphase catastrophe in murine and human lung cancer cells with known high metastatic potential.

 

April 3, 2017 Article:

 

Cyclacel Pharmaceuticals Inc (Nasdaq:CYCC)

Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) shares have tried, and failed, four times to definitively break out over the $6 price level. Today was no exception even though the biotech firm announced positive pre-clinical data on the therapeutic application of their second-generation cyclin-dependent kinase inhibitor. CYCC shares ended Friday at $3.68 and gapped up to open at $4.59 before reaching $6.05, then shares moved downwards and are currently trading around $5.20.

Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) considers itself a pioneer in the field of cell cycle biology. Cyclacel develops small molecule drugs that target various phases of the cell cycle in an effort to treat cancer and other serious diseases that have a high unmet medical need. The medicines Cyclacel develops are orally administered.

The nano-cap firm, based in Berkeley Heights, NJ, presented data at the 2017 American Association for Cancer Research’s annual meeting in Washington D.C. this weekend. In the preclinical study, a group of researchers led by Professor Ethan Dmitrovsky, M.D., including Masanori Kawakami M.D., Ph.D., from The University of Texas MD Anderson Cancer Center, Houston, Texas, explored whether CYC065’s antineoplastic effects engaged anti-metastatic pathways. In vitro migration and invasion assays showed that CYC065 markedly inhibited migration and invasion of lung cancer cell lines, including KRAS mutant line. Reverse Phase Protein Arrays (RPPA) interrogated nearly 300 growth-regulatory proteins in murine and human lung cancer. Put simply, the data show that CYC065 substantially inhibited growth, triggered apoptosis, and induced anaphase catastrophe in murine and human lung cancer cells with known high metastatic potential. This was in marked contrast to effects in immortalized pulmonary epithelial murine and human cells.

Over 17.5% of Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) shares are held by insiders and they have increased their positions by over 21% according to publicly available reports. Conversely, institutions, that own 16% of CYCC shares, have decreased their positions by almost 16% of their total holdings.

Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) shareholders have experienced losses since 2012 when Cyclacel, adjusting for dilutive effects, lost -$20.96 EPS. That loss has narrowed each year since and in 2016 the EPS loss was -$3.50. Dilution has been an issue surrounding CYCC shares. In 2012 there were 690,000 shares outstanding. That number increased each year and in 2016 there were 3.43 million shares outstanding. HC Wainwright is the only firm following Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC) and its analyst rates CYCC shares as a “Strong Buy” with a price target of $7.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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