BERKELEY HEIGHTS, N.J. - Cyclacel Pharmaceuticals (NASDAQ:CYCC), Inc. (NASDAQ: CYCC, NASDAQ: CYCCP), a biopharmaceutical company focused on the development of cancer treatments, has announced the receipt of a research and development (R&D) tax credit amounting to £2.3 million (approximately $2.9 million) from Her Majesty's Revenue and Customs (HMRC), the UK tax authority. The credit is in recognition of R&D expenditures for the year ending December 31, 2023.
The company is also expecting to receive an additional $0.8 million following an anticipated confirmation of a change in the tax credit rate for the same period. This financial boost is significant as it provides Cyclacel with non-dilutive capital, which supports the company's ongoing research into precision medicine approaches for cancer treatment.
Cyclacel's Executive Vice President of Finance & Chief Operating Officer, Paul McBarron, expressed gratitude for the government's support, which aids the development of their clinical candidates, oral fadraciclib and oral plogosertib. These drugs are being evaluated for their potential to address oncology indications where there is a substantial need for new treatments.
Fadraciclib is a CDK2/9 inhibitor that is part of Cyclacel's transcriptional regulation program and is being tested in patients with solid tumors and hematological malignancies. Plogosertib, a PLK1 inhibitor, is part of the company's epigenetic/anti-mitotic program. Cyclacel's strategic aim is to build a diversified biopharmaceutical business with a pipeline of innovative drug candidates targeting oncology and hematology indications.
The information in this article is based on a press release statement from Cyclacel Pharmaceuticals, Inc.
InvestingPro Insights
As Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC) secures a research and development tax credit, investors may be evaluating the company's financial health and potential for future growth. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips:
The company's market capitalization stands at a modest $3.47 million, reflecting the scale of its operations within the biopharmaceutical industry. Despite the recent financial injection from the R&D tax credit, Cyclacel's cash burn rate is a point of concern, as highlighted by one of the InvestingPro Tips. With analysts not expecting the company to be profitable this year, it's important for investors to consider the company's financial runway and how it plans to fund ongoing research and development efforts.
InvestingPro Data also reveals a Price / Book ratio of 0.79 for the last twelve months as of Q3 2023, which could suggest that the stock is potentially undervalued relative to its book value. However, this metric must be weighed against the backdrop of significant operational losses, with an operating income margin of -7439.07% for the same period.
Furthermore, the stock's performance has seen a substantial decline, with a 1 Year Price Total Return of -76.93%. This is consistent with one of the InvestingPro Tips that points out the stock's poor performance over the last decade, indicating that investors have been facing challenges with the company's share price growth.
For those considering an investment in Cyclacel, or current shareholders looking to reassess their position, additional InvestingPro Tips can offer deeper insights. There are 11 more tips available, which can be accessed through the company's specific InvestingPro page. These tips could provide further clarity on the company's financial standing and market performance.
Investors interested in a comprehensive analysis of Cyclacel Pharmaceuticals can utilize the InvestingPro platform, and by using the coupon code PRONEWS24, they can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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