Cyclacel 2024 Q3 Earnings Narrowed Losses Reflecting 67.6% Net Income Improvement

Cyclacel (CYCC) reported its fiscal 2024 Q3 earnings on May 14th, 2025. Cyclacel’s recent earnings results indicated an improvement in net income, with narrowed losses compared to the previous year. The company did not meet analysts' expectations, though it maintained a cautious outlook for its financial future. Cyclacel adjusted its guidance, anticipating increased stockholders' equity and reduced research and development expenses. The strategic focus on plogosertib is expected to streamline operations and enhance financial positioning.

Revenue
Cyclacel experienced a 37.5% drop in total revenue for the third quarter of 2024, falling to $10,000 from $16,000 in the same quarter of 2023. The company’s revenue was primarily derived from its clinical trial supply sector, which contributed $10,000, indicating no diversification in revenue streams during this period.

Earnings/Net Income
Cyclacel demonstrated a significant improvement in its earnings performance, reducing losses to $0.18 per share in 2024 Q3 from $0.48 per share in 2023 Q3, marking a 62.5% improvement. The net loss was narrowed to $-1.96 million, a 67.6% improvement from the $-6.03 million loss in the previous year. Despite ongoing losses over 17 years, the reduced losses suggest a positive trend in earnings.

Price Action
The stock price of Cyclacel has plummeted 16.25% during the latest trading day, has surged 629.33% during the most recent full trading week, and has surged 870.71% month-to-date.

Post Earnings Price Action Review
The strategy of acquiring Cyclacel shares following a revenue decline on earnings release dates, then holding them for 30 days, has shown moderate returns over the past five years. While the strategy achieved a maximum drawdown of -18.64% on January 1, 2025, indicating susceptibility to market downturns, it also had a Sharpe ratio of 1.89, suggesting acceptable risk-adjusted returns compared to the assumed risk-free rate of 1%. The strategy benefited from positive reactions to Cyclacel’s corporate actions, such as a 16.52% stock price increase on May 7, 2025, following a strategic acquisition and rebranding. Although influenced by Cyclacel's corporate developments, the strategy was also shaped by broader market trends, including the mixed performance of the NASDAQ Composite Index. In summary, the strategy showed potential for high returns but was closely tied to corporate developments and broader market conditions.

CEO Commentary
“As part of Cyclacel’s efforts to reduce operating costs, it has determined to focus on the development of plogosertib, a polo-like kinase 1 (PLK 1) inhibitor for treatment of advanced cancers and hematological malignancies,” said Datuk Dr. Doris Wong Sing Ee, Chief Executive Officer. The CEO emphasized the strategic shift towards plogosertib, particularly following the liquidation of Cyclacel Limited, which will significantly decrease research and development expenses and allow the company to concentrate on its clinical program. The tone of the commentary reflects cautious optimism as the company adapts its focus to enhance its operational efficiency and potential market positioning.

Guidance
Cyclacel anticipates that the deconsolidation of Cyclacel Limited will increase stockholders’ equity by approximately $5.0 million and expects available cash, including recent equity financing of $4.1 million, to fund planned activities into the second quarter of 2025. The company projects a significant reduction in research and development expenses for the year ending December 31, 2025, as it prioritizes the plogosertib clinical program and ceases expenditures related to fadraciclib.

Additional News
Cyclacel Pharmaceuticals announced significant corporate actions recently. On May 7, 2025, Cyclacel revealed a 1-for-16 reverse stock split effective May 12, 2025, consolidating its outstanding shares from 356,357,531 to approximately 22,272,346. This strategic move, approved by the board and shareholders, is aimed at boosting the share price. Additionally, Cyclacel announced the appointment of new executive leadership following a change of control transaction closed on February 27, 2025. Earlier, on March 24, 2025, the company disclosed a $1 million private placement offering of convertible preferred stock, highlighting ongoing efforts to strengthen its financial position amidst strategic shifts.