Will Cyclacel Pharmaceuticals’ Pipeline Be a Success?

While Cyclacel Pharmaceuticals (NASDAQ:CYCC) has all the trappings of a small biotech company, including a relatively small market capitalization of $46 million, experts in the field believe the company’s prospects are accelerating. Last February, the company reported positive results for the second-stage trial of its acute myeloid leukemia drug Sapacitabine, indicating that the company has the potential to provide an unmet medical need: cancer treatment.

Now, Cyclacel Pharmaceuticals is set to release the Phase 3 clinical trial results for the company’s latest AML treatment at the annual meeting of the American Society of Hematology on December 9.

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What Potential does Cyclacel Pharmaceuticals Have?

Speaking to The Life Sciences Report in October, Medical Technology Stock Letter editor John McCamant said that even though Cyclacel Pharmaceuticals has “been slow in development,” the company seems to be “accelerating, and the valuation looks pretty attractive right now.”

He based his analysis on the strength of the company’s development team, the depth of its product pipeline, and the upward trend of its stock price.

As Sapacitabine, a drug developed to treat newly diagnosed acute myeloid leukemia in elderly patients, has drawn nearer to the end of its third trial phase, the company’s stock price has made several large gains that have pushed shares closer to $7 than $6. On October 15, shares rose by 40 percent after the company announced that Sapacitabine nearly doubled the expected survival rate in elderly patients with myelodysplastic syndrome, a precursor to AML, in its second-stage trial. When the company announced on Tuesday that third-stage trial results would be released in five days, shares jumped more than 17 percent.

Cyclacel Pharmaceuticals, which develops oral therapies that manipulate cell cycles to treat cancer and other serious diseases without the dangerous side-effects of chemotherapy, has a diverse oncology pipeline. In addition to Sapacitabine, the company has the treatment Seliciclib, which is in Phase IIb clinical trial for the treatment of non-small cell lung cancer.

CHEAT SHEET Analysis: Is Cyclacel’s Product Pipeline Enough?

One of the core components of our CHEAT SHEET Investing Framework requires that companies consistently produce successful products or services. Cyclacel has concentrated on diversifying its biopharmaceutical business, which now includes several potential cancer drugs. If this pipeline results in successful cancer treatments, as trial data has indicated so far, McCamant believes that the company could increase its current valuation.

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