Cyclacel Pharmaceuticals Reports First Quarter 2021 Financial Results

Rhea-AI Summary

Cyclacel Pharmaceuticals (NASDAQ: CYCC, CYCCP) announced FDA authorization for its IND application of oral fadraciclib, a CDK2/9 inhibitor targeting solid tumors. The Phase 1b/2 trial will focus on various cancers, including KRAS mutant types. The company reported $47.8 million in cash as of March 31, 2021, an increase from $33.4 million at year-end 2020, thanks to a recent equity financing of $13.5 million. Cyclacel aims to initiate multiple clinical studies in 2021, leveraging recent research supporting fadraciclib's efficacy against KRAS-mutated cancers.

Positive

• FDA authorization for IND application of oral fadraciclib for advanced solid tumors.
• Cash and cash equivalents increased to $47.8 million as of March 31, 2021, from $33.4 million.
• Successfully raised approximately $13.5 million from an equity financing in March 2021.

Negative

• Net loss increased to $3.5 million for Q1 2021, compared to $1.2 million in Q1 2020.
• No revenues reported for Q1 2021, similar to Q1 2020.

- Announces IND Authorization by FDA for Fadraciclib, a CDK2/9 Inhibitor, in Solid Tumors - 
- Recent Publication Reported that Overactive KRAS Mutants are Impeded by CDK9 Inhibition - 
- Following Recent Financing, Cash Runway Extended to Early 2023 - 
- Conference Call Scheduled May 12, 2021 at 4:30 p.m. ET -

BERKELEY HEIGHTS, N.J., May 12, 2021 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "Cyclacel" or the "Company"), a biopharmaceutical company developing innovative medicines based on cancer cell biology, today reported its financial results for the first quarter 2021 and business highlights, including an update on its progress with fadraciclib and CYC140, Cyclacel's novel CDK2/9 and PLK1 inhibitors, respectively.

“During the quarter, we have made significant progress in bringing our two oral targeted development candidates into mid-stage clinical development. Following recent FDA authorization of our IND for oral fadraciclib, we will finalize contract discussions with sites and open our multi-cohort Phase 1b/2 study in patients with solid tumors,” said Spiro Rombotis, President and Chief Executive Officer. “We believe fadraciclib is establishing a strong position among compounds in clinical development that specifically address cancer resistance mechanisms, including suppression of MCL1, MYC and cyclin E. A recent publication identified potential utility of CDK9 inhibitors in KRAS mutant colorectal cancer, one of the tumor types in our study. Together with our oral CYC140 PLK1 inhibitor program, which has shown in preclinical models that KRAS mutant cancers are sensitive to CYC140 inhibition, we hope to provide valuable alternatives to patients with these difficult to treat malignancies. After strengthening our balance sheet in the quarter, we are executing a precision medicine strategy to achieve multiple milestones and data read outs over the next two years.”

Key Corporate Highlights

• CYC065-101 Phase 1b/2 oral fadraciclib in advanced solid tumors - announced that the U.S. Food & Drug Administration (FDA) has authorized Cyclacel’s Investigational New Drug (IND) application for oral fadraciclib to proceed. This Phase 1b/2 registration-directed trial includes multiple cohorts defined by histology thought to be sensitive to the drug’s mechanism of action and informed by the clinical activity of fadraciclib in MCL1, MYC and cyclin E amplified cancers. The cohorts include breast, colorectal (including KRAS mutant), endometrial/uterine, ovarian cancers and certain lymphomas. The study design also includes a basket cohort which will enroll patients with relevant biomarkers to the drug’s mechanism regardless of histology.
  
  
• A recent publication by researchers led by Frank McCormick, PhD of University of California San Francisco and NCI’s Frederick National Lab for Cancer Research reported that overactive KRAS mutants are impeded by CDK9 inhibition¹. These data expand on previous findings, which show that dual CDK2/9 inhibition is an optimal strategy to treat colorectal cancer², that KRAS mutant pancreatic cancer is sensitive to CDK9 inhibition³, and that fadraciclib showed efficacy against KRAS mutant lung cancer in preclinical PDX models⁴. Collectively these publications suggest the potential for the therapeutic use of fadraciclib in KRAS-mutated cancers, including colorectal, lung and pancreatic.
  
  
• CYC140 PLK1 inhibitor program - commenced IND-directed activities and manufacturing of clinical trial supplies for oral CYC140. Initial data in preclinical models show that KRAS mutant cancers are sensitive to oral CYC140 inhibition.
  
  
• Phase 1b/2 Investigator Sponsored Trial (IST) of sapacitabine-olaparib combination in patients with BRCA mutant metastatic breast cancer – investigators reported that out of 9 patients enrolled, 5 have achieved partial response (PR), 3 stable disease (SD), and one patient has progressed.
  
  
• Announced the closing of an underwritten public offering for net proceeds to the Company of approximately $13.5 million, after deducting placement agent fees and other offering expenses. Existing and new institutional investors participated in the offering. In addition, the Company received approximately $4.5 million in the quarter through warrant exercises.
  
  

Key Near-Term Business Objectives and Expected Timeline

1H 2021

• First patient dosed with oral fadraciclib in Phase 1b/2 advanced solid tumor study

2H 2021

• First patient dosed with oral fadraciclib in Phase 1b/2 leukemia study
• First patient dosed with oral CYC140 in Phase 1/2 advanced solid tumor study

1H 2022

• First patient dosed with oral CYC140 in Phase 1/2 leukemia study
• Phase 1 data with oral fadraciclib in advanced solid tumor study
• Update data from the Phase 1b/2 IST of sapacitabine-olaparib combination in patients with BRCA mutant metastatic breast cancer when reported by the investigators
  

Financial Highlights

As of March 31, 2021, cash and cash equivalents totaled $47.8 million, compared to $33.4 million as of December 31, 2020. The increase of $14.4 million was primarily due to $18.0 million of net cash provided by financing activities, offset by net cash used in operating activities of $3.6 million. There were no revenues for each of the three months ended March 31, 2021 and 2020.

Research and development expenses were $2.6 million for the three months ended March 31, 2021 as compared to $1.1 million for the same period in 2020. Research and development expenses relating to the CDK inhibitor program increased by approximately $0.8 million for the three months ended March 31, 2021 as clinical evaluation of fadraciclib is progressing.

General and administrative expenses for the three months ended March 31, 2021 were $1.7 million, compared to $1.3 million for the same period of the previous year due to an increase in legal and professional expenses and recruitment costs.

Total other income, net, for the three months ended March 31, 2021 was $0.1 million, compared to $0.9 million for the same period of the previous year. The decrease of $0.8 million for the three months ended March 31, 2021 is primarily related to income received under an Asset Purchase Agreement with Thermo Fisher Scientific Inc.

United Kingdom research & development tax credits were $0.7 million for the three months ended March 31, 2021, as compared to $0.3 million for the same period in 2020 as a direct consequence of increased qualifying research and development expenditure.

Net loss for the three months ended March 31, 2021 was $3.5 million, compared to $1.2 million for the same period in 2020.

The Company raised net proceeds of approximately $13.5 million from an equity financing in March 2021. The Company also received an additional $4.5 million of proceeds from warrant exercises.

The Company estimates that cash resources of $47.8 million as of March 31, 2021 will fund currently planned programs through early 2023.

Conference call information:

Conference ID 2763358 Webcast link

US/Canada call: (877) 493-9121 / international call: (973) 582-2750 

US/Canada archive: (800) 585-8367 / international archive: (404) 537-3406 

For the live and archived webcast, please visit the Corporate Presentations page on the Cyclacel website at www.cyclacel.com.

______________________________

¹ Pui Lai L, et al, SLAS Discovery I-II 2021, https://journals.sagepub.com/doi/abs/10.1177/24725552211008853.
² Somarelli JA, et al, Mol Cancer Ther, 2020 19 2516. DOI: 10.1158/1535-7163.MCT-20-0454.
³ Blake DR, et al, Science Signalling, 2019, https://pubmed.ncbi.nlm.nih.gov/31311847/.
⁴ Kawakami M, et al J Natl Cancer Inst, 2017 109, https://pubmed.ncbi.nlm.nih.gov/28376145/.

About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a clinical-stage, biopharmaceutical company developing innovative cancer medicines based on cell cycle, transcriptional regulation and mitosis biology. The transcriptional regulation program is evaluating fadraciclib, a CDK2/9 inhibitor, and the anti-mitotic program CYC140, a PLK1 inhibitor, in patients with both solid tumors and hematological malignancies. Cyclacel's strategy is to build a diversified biopharmaceutical business based on a pipeline of novel drug candidates addressing oncology and hematology indications. For additional information, please visit www.cyclacel.com.

Forward-looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding, among other things, the efficacy, safety and intended utilization of Cyclacel's product candidates, the conduct and results of future clinical trials, plans regarding regulatory filings, future research and clinical trials and plans regarding partnering activities. Factors that may cause actual results to differ materially include the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates, the risks associated with reliance on outside financing to meet capital requirements, and the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and other filings we file with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Company:               Paul McBarron, (908) 517-7330, pmcbarron@cyclacel.com
Investor Relations:  LifeSci Advisors, LLC, Irina Koffler, (646) 970-4681, ikoffler@lifesciadvisors.com

© Copyright 2021 Cyclacel Pharmaceuticals, Inc. All Rights Reserved. The Cyclacel logo and Cyclacel^® are trademarks of Cyclacel Pharmaceuticals, Inc.

CYCLACEL PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (LOSS)
(In $000s, except share and per share amounts)

			Three Months Ended
			December 31,
			2020				2021
Revenues:
Total revenues				-				-
Operating expenses:
	Research and development			1,106				2,566
	General and administrative			1,318				1,739
Total operating expenses				2,424				4,305
Operating loss				(2,424	)			(4,305	)
Other income (expense):
	Foreign exchange gains (losses)			69				10
	Interest income			28				4
	Other income, net			817				126
		Total other income (expense), net		914				140
Loss before taxes				(1,510	)			(4,165	)
Income tax benefit				290				687
Net loss				(1,220	)			(3,478	)
Dividend on convertible exchangeable preferred shares				(50	)			(50	)
Beneficial conversion feature of Series B preferred stock				-				-
Net loss applicable to common shareholders			$	(1,270	)		$	(3,528	)
Basic and diluted earnings per common share:
Net loss per share – basic and diluted			$	(1.48	)		$	(0.50	)
Weighted average common shares outstanding				859,998				7,099,037

CYCLACEL PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEET
(In $000s, except share, per share, and liquidation preference amounts)

	December 31,			March 31,
	2020			2021
ASSETS
Current assets:
Cash and cash equivalents	$	33,406		$	47,777
Prepaid expenses and other current assets		2,063			2,686
Total current assets		35,469			50,463
Property and equipment, net		106			173
Right-of-use lease asset		1,227			1,181
Total assets	$	36,802		$	51,817
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	514		$	871
Accrued and other current liabilities		1,972			1,901
Total current liabilities		2,486			2,772
Lease liability		1,057			996
Total liabilities		3,543			3,768
Stockholders’ equity		33,259			48,049
Total liabilities and stockholders’ equity	$	36,802		$	51,817

SOURCE: Cyclacel Pharmaceuticals, Inc.

FAQ

What is the significance of the IND authorization for Cyclacel Pharmaceuticals' fadraciclib?

The IND authorization allows Cyclacel to proceed with clinical trials for fadraciclib, a drug targeting solid tumors, potentially opening new treatment avenues.

What were Cyclacel Pharmaceuticals' financial results for the first quarter of 2021?

Cyclacel reported a net loss of $3.5 million, no revenues, and cash equivalents of $47.8 million as of March 31, 2021.

How much funding did Cyclacel Pharmaceuticals raise recently?

Cyclacel raised approximately $13.5 million from an equity financing in March 2021.

What are Cyclacel's near-term business objectives following the recent FDA approval?

Cyclacel aims to initiate multiple Phase 1b/2 studies for fadraciclib and CYC140 in various cancer types throughout 2021.