Why Wall Street Is Bullish On Cyclacel Pharmaceuticals Inc. (NASDAQ: CYCC)


After Cyclacel Pharmaceuticals Inc. (NASDAQ: CYCC) released its 2Q2016 financial results and issued some operational updates, some analysts on Wall Street believe it could be a compelling stock flying under the radar.

The analysts who are bullish on Cyclacel Pharmaceuticals Inc. (NASDAQ: CYCC) include those at H.C. Wainwright. Those analysts have maintained their BUY rating on the stock of Cyclacel and set $60 price estimate on the stock as well.

According to analyst Andrew Fein of H.C. Wainwright, the reason for their optimism is predicated on the pending readout of a study of Cyclacel’s SEAMLESS Phase 3 study on elderly patients with acute myeloid leukemia (AML).

Patients being targeted in the SEAMLESS study are those who are not fit for induction therapy. Cyclacel said that preparation for final analysis of the study data is underway.

Interest in Cyclacel Pharmaceuticals Inc. (NASDAQ: CYCC) stock

It seems to the analysts at H.C. Wainwright that positive readout of the SEAMLESS study could trigger interest in the stock of Cyclacel. Being a $13.5 million cap stock, not many investors have so far shown great interest in the stock. But after the pending data readout, the story could change.

Once the analysis of the SEAMLESS data is completed, Cyclacel plans to report the outcome of the primary and secondary endpoints to the regulators in the U.S. and Europe.

Other than AML, Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) is running other clinical programs and investor attention will turn to those programs after the company releases the SEAMLESS data.

What transpired in 2Q?

Cyclacel posted EPS loss of $1.01 on revenue of $0.22 million. While the EPS improved from a comparable quarter last year, revenue declined 26.7% YoY.

In the prior quarter, the company reported EPS loss of $0.09 on revenue of $0.14 million, which also pulled back 72.5% YoY.

Cyclacel Pharmaceuticals Inc. (NASDAQ: CYCC) said that R&D consumed $2.6 million in the latest quarter, almost at the same level as the same quarter last year.

The company finished the latest quarter with cash and equivalents of $15.9 million.


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