Cyclacel Pharmaceuticals Reports Fourth Quarter and Full Year 2023 Financial Results and Provides Business Update
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Insights
The announcement from Cyclacel Pharmaceuticals regarding their progress on fadraciclib and plogosertib represents a significant milestone in the company's pipeline development. From a financial perspective, the transition from Phase 1 to Phase 2 studies is a pivotal moment that often leads to a reassessment of the drug's commercial potential and, consequently, the company's valuation. The specificity of Cyclacel's approach, targeting mutational profiles, aligns with current trends in precision medicine, which could lead to higher efficacy and market differentiation. However, investors should monitor the burn rate as clinical trials advance and consider the implications of potential capital raises on shareholder dilution.
Moreover, the mention of final data from the fadraciclib 065-101 dose escalation study is of interest as it could influence the company's short-term stock volatility. Positive data could lead to investor optimism, whereas any setbacks might have a converse effect. Long-term, the success of these drugs could significantly alter Cyclacel's revenue projections and strategic partnerships, making it a company to watch in the oncology space.
The clinical progress reported by Cyclacel Pharmaceuticals in the development of fadraciclib and plogosertib is notable for its potential impact on treatment paradigms in oncology. Fadraciclib's differentiation from other CDK inhibitors could offer therapeutic advantages, especially for patients with CDKN2A/CDKN2B alterations, which are common in several cancer types. The observed clinical activity in T cell lymphoma also suggests a broader applicability of the drug beyond solid tumors.
For plogosertib, the focus on ARID1A- and SMARCA-mutated cancers is intriguing, given the unmet need in these patient populations. The switch to a new oral formulation with improved bioavailability could enhance patient compliance and treatment outcomes. As an oncologist, the transition of these drugs into later-stage trials is encouraging, but I remain cautiously optimistic until larger, controlled studies confirm their safety and efficacy profiles.
The progression of Cyclacel's pipeline drugs into later stages of clinical development is a critical indicator of their potential efficacy and safety. The pharmaceutical industry places considerable emphasis on Phase 2 proof-of-concept studies as they provide a more definitive signal of a drug's therapeutic benefit. Cyclacel's strategy to evaluate patient cohorts based on mutational profiles is aligned with the precision medicine approach, potentially increasing the likelihood of clinical success. This could lead to a competitive advantage if the drugs prove to be effective in these specific patient subgroups.
Additionally, the company's plan to present at the AACR Annual Meeting 2024 is a strategic move to gain visibility within the scientific community and could attract collaboration or licensing opportunities. The preclinical data for plogosertib targeting ARID1A- and SMARCA-mutated cancers, while early, could open new avenues for treatment if the clinical hypothesis holds true in human studies. Close monitoring of these developments is important for stakeholders interested in the oncology sector's evolving landscape.
– On Track to Start Oral Fadraciclib Phase 2 Proof of Concept in 1H 2024 –
– Expect to Report Final Data from Fadraciclib 065-101 Dose Escalation –
– Oral Plogosertib Preclinical Data Support Precision Medicine Strategy in ARID1A- and SMARCA-Mutated Cancers –
– Management to Host Conference Call at 4:30 pm ET Today –
BERKELEY HEIGHTS, N.J., March 19, 2024 (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 announced fourth quarter and full year 2023 financial results and provided a business update.
“Following the recently announced precision medicine strategy for oral fadraciclib, our CDK2/9 inhibitor, we have determined the recommended Phase 2 dose (RP2D) and are ready to start proof-of-concept studies,” said Spiro Rombotis, President and Chief Executive Officer. “We expect two key data readouts for fadraciclib this year. These include pharmacokinetic (PK), pharmacodynamic (PD), safety and activity data from the dose escalation part of the 065-101 Phase 1/2 study. In addition, we expect to report initial clinical activity from the Phase 2 proof of concept part, evaluating cohorts of patients selected for their mutational profile and/or Phase 1 activity in various solid tumors and lymphoma. At the upcoming AACR Annual Meeting 2024, independent investigators will present preclinical proof-of-concept data for fadraciclib further demonstrating fadraciclib’s differentiated properties from other next generation CDK inhibitors.”
“We have observed CDKN2A/CDKN2B alterations, including loss of function, in multiple, pretreated patients with various cancers, including gynecological, hepatobiliary, lung, and pancreatic, who benefitted from fadraciclib monotherapy. In addition, we have observed clinical activity in patients with T cell lymphoma,” said Brian Schwartz, M.D., interim Chief Medical Officer. "We expect to report final Phase 1 results including details on patient genomic profiles at an upcoming medical conference. A precision medicine strategy is also emerging for plogosertib, our PLK1 inhibitor. Preclinical data from independent groups have shown that certain ARID1A- and SMARCA-mutated cancers may benefit from treatment with plogosertib. Before testing this hypothesis in our 140-101 dose escalation study, we plan to switch to a new oral formulation of plogosertib with improved bioavailability. We are excited about the potential precision medicine strategies for both our clinical programs, with initial data from the fadraciclib Phase 2 proof-of-concept study."
Key Highlights for 2024
- First patient dosed with oral fadraciclib in Phase 2 proof-of-concept part of 065-101 study in patients with advanced solid tumors and lymphoma
- Report final data from dose escalation stage from the 065-101 study of oral fadraciclib in patients with advanced solid tumors and lymphoma
- Report interim data from initial cohorts in Phase 2 open label, proof-of-concept part of 065-101 study with oral fadraciclib in patients with advanced solid tumors and lymphoma
- Independent investigators to report preclinical proof-of-concept data for fadraciclib at the American Association for Cancer Research (AACR) Annual Meeting 2024
Financial Highlights
As of December 31, 2023, pro forma cash and cash equivalents totaled
Research and development (R&D) expenses were
General and administrative expenses for the three months and year ended December 31, 2023, were
Total other income, net, for the three months and year ended December 31, 2023, were an expense of
United Kingdom research & development tax credits for the three months and year ended December 31, 2023 were
Net loss for the three months and year ended December 31, 2023, was
Conference call information:
US/Canada call: (800) 579 2543 / international call: (785) 424 1789
US/Canada archive: (800) 839 9720 / international archive: (402) 220 6092
Code for live and archived conference call is CYCCQ423. (Webcast link)
For the live and archived webcast, please visit the Corporate Presentations page on the Cyclacel website at www.cyclacel.com. The webcast will be archived for 90 days and the audio replay for 7 days.
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 plogosertib, 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, the potential effects of the COVID-19 pandemic, 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: | Grace Kim, ir@cyclacel.com |
© Copyright 2024 Cyclacel Pharmaceuticals, Inc. All Rights Reserved. The Cyclacel logo and Cyclacel® are trademarks of Cyclacel Pharmaceuticals, Inc.
SOURCE: Cyclacel Pharmaceuticals, Inc.
CYCLACEL PHARMACEUTICALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (LOSS) (In | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues: | |||||||||||||||
Clinical trial supply | 31 | - | 420 | - | |||||||||||
Total revenues | 31 | - | 420 | - | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 3,518 | 6,702 | 19,155 | 20,274 | |||||||||||
General and administrative | 1,873 | 2,143 | 6,718 | 7,382 | |||||||||||
Total operating expenses | 5,391 | 8,845 | 25,873 | 27,656 | |||||||||||
Operating loss | (5,360 | ) | (8,845 | ) | (25,453 | ) | (27,656 | ) | |||||||
Other income (expense): | |||||||||||||||
Foreign exchange gains (losses) | (356 | ) | (281 | ) | (414 | ) | 233 | ||||||||
Interest income | 23 | 122 | 266 | 210 | |||||||||||
Other income, net | - | 3 | 50 | 1,298 | |||||||||||
Total other income (expense), net | (333 | ) | (156 | ) | (98 | ) | 1,741 | ||||||||
Loss before taxes | (5,693 | ) | (9,001 | ) | (25,551 | ) | (25,915 | ) | |||||||
Income tax benefit | 422 | 1,581 | 2,996 | 4,717 | |||||||||||
Net loss | (5,271 | ) | (7,420 | ) | (22,555 | ) | (21,198 | ) | |||||||
Dividend on convertible exchangeable preferred shares | (50 | ) | (50 | ) | (201 | ) | (201 | ) | |||||||
Net loss applicable to common shareholders | $ | (5,321 | ) | $ | (7,470 | ) | $ | (22,756 | ) | $ | (21,399 | ) | |||
Basic and diluted earnings per common share: | |||||||||||||||
Net loss per share – basic and diluted (common shareholders) | $ | (6.23 | ) | $ | (8.94 | ) | $ | (26.75 | ) | $ | (28.70 | ) | |||
Net loss per share – basic and diluted (redeemable common shareholders) | $ | - | $ | - | $ | - | $ | (27.24 | ) | ||||||
Weighted average common shares outstanding | 854,031 | 835,946 | 850,815 | 750,379 |
CYCLACEL PHARMACEUTICALS, INC. CONSOLIDATED BALANCE SHEET (In | |||||
December 31, | December 31, | ||||
2023 | 2022 | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 3,378 | $ | 18,345 | |
Prepaid expenses and other current assets | 4,066 | 6,066 | |||
Total current assets | 7,444 | 24,411 | |||
Property and equipment, net | 9 | 32 | |||
Right-of-use lease asset | 93 | 142 | |||
Non-current deposits | 1,259 | 3,465 | |||
Total assets | $ | 8,805 | $ | 28,050 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ | 3,543 | $ | 2,561 | |
Accrued and other current liabilities | 4,618 | 4,950 | |||
Total current liabilities | 8,161 | 7,511 | |||
Lease liability | 37 | 106 | |||
Total liabilities | 8,198 | 7,617 | |||
Redeemable common stock | - | 4,494 | |||
Stockholders’ equity | 607 | 15,939 | |||
Total liabilities and stockholders’ equity | $ | 8,805 | $ | 28,050 |
FAQ
When is Cyclacel Pharmaceuticals planning to start the oral Fadraciclib Phase 2 proof of concept?
What data readouts can be expected for Fadraciclib this year?
Which mutations have shown potential benefit from Fadraciclib monotherapy according to Brian Schwartz, M.D.?
What is the precision medicine strategy for Plogosertib by Cyclacel Pharmaceuticals?