Cyclacel Pharmaceuticals (CYCC) Stock Rockets On Quarterly Results

Cyclacel Pharmaceuticals CYCC Stock News

Cyclacel Pharmaceuticals Inc (NASDAQ: CYCC) is rocketing in the market this moring, trading on gains of well over 15% before the opening bell. The gains came after the company provided its first quarter financial and operational results. Here’s what has investors so excited:

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CYCC Stock Pops On Quarterly Results

As mentioned above, Cyclacel Pharmaceuticals released its financial and operational results for the first quarter. While financial results were great, which we’ll get to later, I believe that most of the excitement here has to do with the comapny’s work in the fight against COVID-19.

In the release, CYCC reminded investors that it had entered into an agreement with the University of Edinburgh to evaluate the potential of COVID-19 treatments. In particular, the agreement surrounds CDK inhibitors known as Fadraciclib and Seliciclib.

The treatments were developed to reduce runaway inflamation and subsequent lung injury. Of course, lung inflammation and lung injury are the biggest issues associated with COVID-19. Importantly, this work is being funded by a $2.5 million grant from LifeArc, a medical research charity.

Now, let’s talk money!

In the earnings report, CYCC said that due to a recent $20 million fund raise, it now has enough money in the bank to create a cash runway through the end of 2022. That’s great news as it means that investors don’t have to worry about dilutive offings any time soon.

However, there’s more to the story than COVID-19 and financial results. In fact, according to ClinicalTrials.gov, the company’s CDK Inhibitor and Venetoclax study in relapsed or refractory CLL patients is expected to be completed by this Friday, May 15, 2020. This is important to keep in mind as not only did the company have great operational results, there’s likely a catalyst ahead as we hear more about this trial.

Not to mention that just yesterday, the company was highlighted in the “Pituitary ACTH Hypersection Drug Market report”. The report actually names Cyclacel Pharmaceuticals as one of the key companies to watch in the space.

Finally, investors have been concerned about the potential delisting of the stock from the NASDAQ. However, after recent activity, CYCC now seems to be in full compliance with NASDAQ listing requirements, taking delisting off of the table.

The Bottom Line

The bottom line here is simple. Cyclacel Pharmaceuticals seems to be making all the right moves at all the right times. Not only is the company in a great spot financially, it is taking part in the fight against COVID-19 while maintaining work on its core therapeutic candidates.

With delisting now off of the table, a cash runway to get the company through the next two and a half years, promising work in COVID-19 as well as other areas of medicine that the company is working in, and the disapearance of the threat of delisting taking place, CYCC is a stock that’s well worth watching!

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