Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) Due To Climb Higher

Today, we need to assess again Cyclacel Pharmaceuticals (NASDAQ: CYCC), the clinical-stage biopharmaceutical company. Cyclacel LogoWhy?Because the share price seems to be reacting to the presentations given to the investors, which are expected to be given in September. Additionally, a new market participant declared a big stake in the company and the new 10-Q was recently released showing again the interesting financial shape of CYCC.Have a look at the recent volatility created in the market: 1 month chart for CYCCAs we mentioned in another article, the company owns several candidates including potential treatments using the cyclin-dependent kinase (CDK) 2/9 inhibitor that is said to be useful for the treatment of cancer.Additionally, we noted the large amount of assets shown on the financial statements and lack of liabilities. Furthermore, we said that its leveraged preferred stock could be interesting for volatility seekers. In this article, we will assess again all the interesting features.Recent DevelopmentsLet's revise briefly the company's background. Cyclacel uses "cell cycle, transcriptional regulation and DNA damage response biology to develop innovative, targeted medicines for cancer and other proliferative diseases." As already mentioned, the company's flagship program is evaluating CYC065, a CDK inhibitor, in patients with advanced cancers.The following table, which we obtained from the company's website, is quite informative. Have a look at it: Cyclacel's Development PipelineWhat's new?On August 7, 2017, the company noted the selection of a recommended Phase 2 dose from part 1 of a dose-escalating, Phase 1, first-in-human clinical study of CYC065, and a Cyclin Dependent Kinase 2/9 inhibitor. Although we consider that the development is key, the market seemed to expect the news, as the share price did not really react to the news. Spiro Rombotis, President and Chief Executive Officer of Cyclacel, was quoted:

“Durable reduction of Mcl-1 expression in the majority of patients at RP2D is an important differentiator, as other CDK inhibitors only do so transiently. Like other CDK inhibitors, we expect CYC065 to work best in combination with existing anticancer drugs. Indications of anticancer activity after a single dose of CYC065 alone in patients with molecular features related to the drug’s mechanism are unexpected and potentially exciting.” Source

Additionally, in August, we could have a look at the new financial statements in a new 10-Q report. We appreciated that the company continues to show a solid balance sheet and plenty of cash to finance the Phase 2 trials:Current assets: (in thousands) December 31, 2016 June 30, 2017Cash and cash equivalents $16,520 $13,591Prepaid expenses and other current assets3,0972,460Total current assets19,61716,051Property, plant and equipment (net)4532Total assets $19,662 $16,083

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Additionally, the liabilities continued to be reduced as compared to the amount of assets:

Accounts payable (in thousands)$2,497$2,038Accrued and other current liabilities2,7622,281Total current liabilities5,2594,319Other liabilities130128Total liabilities 5,389 4,447

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Furthermore, we could have access to the amount of shares outstanding and the preferred stock. We are noting the following information for those readers who appreciate checking for stock dilution:

• Preferred stock: 5,000,000 shares authorized and 335,273 shares issued and outstanding as of June 30, 2017.
• Common stock: 100,000,000 shares authorized and 4,439,947 shares issued as of June 30, 2017 respectively.

New Market ParticipantWe need to note an increase in the demand for the stock, as a new market participant bought shares:NameSharesDate ReportedEASTERN CAPITAL LTD2,167,261Jul 18, 2017

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Check the presentations to investors - Conclusion

Currently trading with a market cap of $27 million, CYCC is an exciting story among small caps. We appreciate that the company shows plenty of cash to operate for a long time. Additionally, the fact that new investors are willing to contribute to the cause is a very good signal. Furthermore, we appreciate that the company has several programs approaching phase 2, thus soon we may have interesting news. To sum up, be alert on this name and follow the smart money!We will be updating our subscribers as soon as we know more. For the latest updates on CYCC, sign up below!Image courtesy of alexandra_bhatina via FlickrDisclosure: We have no position in CYCC and have not been compensated for this article.