Cyclacel Pharmaceuticals , Inc. (NASDAQ:CYCC), a biopharmaceutical firm, announced significant corporate updates following its 2024 Annual Meeting of Stockholders held on June 21, 2024.
Notably, the company's stockholders approved an amendment to the Cyclacel Pharmaceuticals, Inc. 2018 Equity Incentive Plan, increasing the number of shares available for issuance by 160,000. This amendment, initially approved by the board on May 3, 2024, is detailed in the company's proxy statement.
In leadership changes, Dr. Samuel L. Barker has been appointed as the new Chair of the board, succeeding Dr. Christopher Henney, who stepped down from the role but will remain on the board.
Additionally, the board has approved a salary deferral for CEO Spiro Rombotis, with $22,000 per month deferred until December 31, 2024, subject to forfeiture if not paid by this date.
At the Annual Meeting, stockholders also re-elected three Class 3 directors and ratified the appointment of RSM US LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024. Moreover, the advisory vote on executive compensation received approval from the company's stockholders.
In a separate board resolution on June 21, 2024, Cyclacel decided to suspend the quarterly cash dividend for its 6% Convertible Exchangeable Preferred Stock that was scheduled for August 1, 2024. The board will reassess the dividend payment every quarter.
The information presented in this article is based on a press release statement.
In other recent news, Cyclacel Pharmaceuticals has made significant strides in its clinical development program. The company recently announced the final Phase 1 results for trial 065-101, establishing the recommended Phase 2 dose for its investigational drug, oral fadraciclib. Cyclacel Pharmaceuticals has moved on to the next phase of research, enrolling the first Phase 2 cohort. This cohort includes patients with CDKN2A/CDKN2B alterations and T-cell lymphoma.
In terms of financial developments, Cyclacel Pharmaceuticals reported its Q1 2024 results, closing an $8 million financing round. The company's net loss for Q1 2024 was reported at $2.9 million. The company's cash and cash equivalents as of March 31, 2024, totaled $9.9 million, a figure that includes recent financing.
Roth/MKM maintained its Buy rating and $11.00 price target for Cyclacel Pharmaceuticals, highlighting the significance of the trial's progress. The firm anticipates that Cyclacel Pharmaceuticals will deliver interim data from the initial cohorts of the ongoing Phase 2 trial by the end of 2024.
InvestingPro Insights
Cyclacel Pharmaceuticals, Inc. (NASDAQ:CYCC), while making strides in its clinical development program, is also a subject of interest for investors due to its financial and stock performance metrics. Here are some key insights based on recent data from InvestingPro:
InvestingPro Data indicates that Cyclacel has a market capitalization of 2.53 million USD, reflecting its size within the biopharmaceutical landscape. Despite the challenges, the company maintains a gross profit margin of 100% as of the last twelve months ending Q1 2024, showing its ability to retain revenue after accounting for the cost of goods sold.
However, the company's operating income margin is reported at -5008.69% for the same period, highlighting the significant expenses incurred beyond the direct costs of production. With a basic and diluted EPS (Continuing Operations) of -20.54 USD, the financial figures suggest that Cyclacel is currently not profitable.
Looking at stock performance, InvestingPro Tips reveal a significant return over the last week with a 10.83% price total return, which could capture the interest of short-term investors. Yet, the company's stock has experienced a notable decline of -81.85% over the past year, indicating a period of volatility and investor caution.
Additionally, two InvestingPro Tips that may be relevant to investors considering Cyclacel Pharmaceuticals are:
1. The company holds more cash than debt on its balance sheet, which can provide a cushion for financial operations and potential investments.
2. Analysts do not anticipate the company will be profitable this year, signaling the need for cautious evaluation of the company's long-term financial health.
Investors looking to delve deeper into Cyclacel Pharmaceuticals can find additional InvestingPro Tips that may help in making informed decisions. There are currently 12 additional tips available on InvestingPro, which can be accessed by visiting: https://www.investing.com/pro/CYCC. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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