Generally, when a pharmaceuticals or biotech company releases, what the market believes to be, positive results, the stock tends to rise. That was the case with Cyclacel Pharmaceuticals Inc. (NASDAQ: CYCC) with its second-gen CDK2/9 Inhibitor (CYC065), which is being evaluated in a first-in-human Phase I trial in patients with advanced solid tumors. On April 2, 2017, Cyclacel announced its presentation of its preclinical data, which demonstrated potential therapeutic uses. Independent investigators presented the data for CYC065 at the Annual American Association for Cancer Research Meeting in Washington, D.C. The meeting is still going on and will last until April 5, 2017.
Cyclacel Pharmaceuticals Inc
Cyclacel Pharma is a clinical-stage biopharma company primarily engaged in the use of cell cycle, transcriptional regulation and DNA damage response biology in an attempt to develop targeted and innovative therapies for cancer and other proliferative diseases. Cyclacel’s transcriptional regulation program is evaluating its CDK2/9 Inhibitor in patients with advanced stages of cancers.The company is not a one trick pony, and has other drugs in its pipeline undergoing clinical trials, such as Sapacitabine, an oral nucleoside analogue prodrug that has demonstrated potent anti-tumor activity in tumors, in preclinical studies, and Seliciclib.
Now, CYC065 showed that it was able to inhibit growth, trigger apoptosis (death of cells), and induced anaphase catastrophe in murine and human lung cancer cells with known high metastatic potential. In other words, the drug could have some therapeutic uses for some cancer patients. The CYC065 treatment resulted in up-regulation of proteins in DNA damage and apoptosis. The results indicated that the drug shows marked antineoplastic effects in lung cancers despite presence of KRAS mutations. Moreover, it showed that CYC065 inhibited migration and invasion of lung cancer cells. The next move for Cyclacel would be to move onto the next stage of its clinical trial in order to conduct further testing to determine the efficacy of CYC065.
What You Need to Know About CYCC
- Cyclacel recently reported its earnings on March 28, 2017. The company reported a fourth quarter loss of 69 cents per share, on revenue of $0.3M. Cyclacel slightly beat the consensus estimate of a net loss of 73 cents per share on revenue of $0.2M.
- The stock had a 52-week high of $9.72 and a 52-week low of $3.05. CYCC returned over 75% during the past week, and 83.85% over the past month.
- CYCC has a price-to-book ratio of 0.9, while the industry average is 5.9.
- Cyclacel has a price-to-sales ratio of 11.5, while the industry average is 6.2
Look at the performance of Cyclacel Pharma:
CYCC recently announced preclinical data, suggesting that its CDK2/9 Inhibitor could potentially be used for therapeutic purposes. Moreover, the company recently released earnings results, which beat the consensus estimate. Additionally, in comparison to the industry average, the stock has a price-to-book ratio that may be indicating its undervalued.
Although Cyclacel traded higher today, the stock is reaching the upper end of its recent trading range, as shown in the weekly chart here:
The company has a price-to-sales ratio of 11.5, indicating that it may be overvalued, when compared to some of its competitors. Moreover, the stock has been up over 83% over the past month, and traders may consider this as a mean reversion opportunity.
Cyclacel shares were up significantly on April 3, 2017, due to its announcement of independent investigators presentation of its preclinical data of CYC065. The stock could build momentum off of this catalyst, and it’s already erased its losses in 2017, thus far, after being down 30.43% YTD, as of March 31, 2017. On the other hand, there may be some reasons that argue for a bearish case on the stock, as outlined previously. The next developments to keep an eye on are its announcements of results for its other drugs in its pipeline, as well as CYC065.