Cyclacel Pharmaceuticals Inc (NASDAQ: CYCC) Is Today's Biotech Focus

The share price of Cyclacel Pharmaceuticals (NASDAQ: CYCC), the biopharmaceutical company developing small molecule drugs for the treatment of cancer, jumped around 140% in just two days from $4.33 per share, as positive results were released about its new product for the treatment of lung cancer patients. The market overreacted to the news. The share price went back from $10 to $5.96 in the following three days. Some other independent analysts, like The Street's Adam Feuerstein, went even further, who claimed that the stock had been manipulated:

"The blatant manipulation of down-and-out, micro-cap biotech stocks is out of control. Regulators should step in. $CYCC," Source

Anyway, take a look at the chart:SourceThe company and the press releaseCyclacel is a clinical-stage biopharmaceutical that develops medicines for cancer based on cell cycle control, transcriptional regulation and DNA damage response biology. The company owns rights to commercialize its own candidates and expects to sign partnership arrangements with bigger organizations.On April 2, 2017, Cyclacel issued a press release announcing the presentation by independent investigators of preclinical data, showing the potential of CYC065, the company's second-generation, cyclin-dependent kinase (CDK) 2/9 inhibitor, for the treatment of cancer. The press release explained the new discovery with the following words:

"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. CYC065 markedly inhibited migration and invasion of lung cancer cells and affected distinctive pathways involved in DNA damage response, apoptosis, cell cycle regulation and cell migration." Source

Spiro Rombotis, President and Chief Executive Officer of Cyclacel, also stated that the new data adds more information about the value of CDK inhibition as an approach to treating cancer. If you are interested in the data delivered, you should look for the following abstract in the AACR website: "The novel PLK1 inhibitor, CYC140: Identification of pharmacodynamic markers, sensitive target indications and potential combinations".Is the new data released so valuable? Honestly, we do not know. It is very difficult to assess the value of the preclinical data. In addition, the new product being developed is so new that it is difficult to obtain an exact price.The lack of past transactions for comparison and the fact that it has not been commercialized make obtaining the future cash flows very difficult. Thus, the valuation of the company is very difficult.Products and Financial results - Annual reportThe following is a list of the products being developed by the company. You should note that the company owns one product in phase 3, three products in phase 2, and two products in phase 1. If these products pass the phase 3 and they are approved by the FDA, you can be sure that the stock price will increase very fast. So, you need to get informed as soon as it happens:SourceThis is some information about the phases:

"Phase 1: The clinical trials are initially conducted in a limited population to test the drug candidate for safety, dose tolerance, absorption, metabolism, distribution and excretion in healthy humans or, on occasion, in patients, such as cancer patients. Phase 1 clinical trials can be designed to evaluate the impact of the drug candidate in combination with currently approved drugs.Phase 2: These clinical trials are generally conducted in a limited patient population to identify possible adverse effects and safety risks, to determine the efficacy of the drug candidate for specific targeted indications and to determine dose tolerance and optimal dosage. Multiple Phase 2 clinical trials may be conducted by the sponsor to obtain information prior to beginning larger and more expensive Phase 3 clinical trial.Phase 3: These clinical trials are commonly referred to as pivotal clinical trials. If the Phase 2 clinical trials demonstrate that a dose range of the drug candidate is effective and has an acceptable safety profile, Phase 3 clinical trials are then undertaken in large patient populations to further evaluate dosage, to provide substantial evidence of clinical efficacy and to further test for safety in an expanded and diverse patient population at multiple, geographically dispersed clinical trial sites. " Source

The balance sheet looks very healthy; the company holds $16 million in cash, and a total amount of assets of $19 million approximately. The amount of liabilities is quite small; it holds $5.2 million in current liabilities and an amount of total liabilities of $5.3 million. The ratio of assets/liabilities is 3.8, which is way above what we are used to see while assessing balance sheets of other biopharmaceutical companies.Share Outstanding and Preferred StockThe total amount of shares outstanding is 335 million, which is exactly the amount reported in 2015. The company is not diluting shareholders, which is very good news. In addition, Cyclacel did not issue a lot of convertible securities, such as warrants or preferred convertible shares.For those interested in the preferred stock, it trades, and the ticker is CYCCP. It has a conversion price of $2.35 and a conversion ratio of 4.2553. You can find more information about it here or by subscribing to our newsletter.This is chart of both securities, the preferred and the common stock, in the last year:SourceConclusionThe company owns a large amount of candidates and several experts claim that the cyclin-dependent kinase (CDK) 2/9 inhibitor may be useful for the treatment of cancer. In addition, an important fact is that the company owns a substantial amount of assets, very little liabilities and it is not issuing a lot of convertible shares should please shareholders. On the top of it, you can grab this opportunity by trading the shares or the the preferred stock, which will provide you with some leverage, since it can be converted to shares. We will be updating our subscribers as soon as we know more. For the latest updates on CYCC, sign up below!Disclosure: We have no position in CYCC and have not been compensated for this article.