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CP

Cyclacel Pharmaceuticals, Inc. (CYCC)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 2024 showed materially reduced operating spend with net loss of $1.96M vs $6.03M YoY and R&D down to $0.95M (from $5.24M), driven largely by non-recurring manufacturing costs; revenue remained de minimis at $0.01M .
  • The company reiterated cash runway only “into the fourth quarter of 2024” and disclosed substantial doubt about going concern absent additional financing; Nasdaq granted an equity compliance extension to December 24, 2024, but delisting risk persists if equity minimum is not met .
  • Clinical progress: initial Phase 2 safety/efficacy data in biomarker-enriched Cohort 8 (CDKN2A/B) presented at ENA 2024 (Barcelona) with signals of disease control in early evaluable patients; Cohort 6 (T-cell lymphoma) continues enrollment .
  • Post-quarter liquidity action: warrant exercise generated ~$2.1M gross proceeds (Nov 13–14), providing incremental working capital to support programs near term .
  • No formal revenue/EPS guidance or consensus estimates were available; we could not retrieve Wall Street consensus via S&P Global for CYCC, so beat/miss vs estimates cannot be assessed (S&P Global consensus unavailable).

What Went Well and What Went Wrong

What Went Well

  • R&D and G&A cost reductions: R&D declined to $0.95M from $5.24M YoY (non-recurring manufacturing), and G&A fell to $1.24M from $1.63M YoY (lower stock-based comp) .
  • Clinical execution: “initial safety and efficacy data from twelve patients” in Phase 2 Cohort 8 presented at ENA 2024; early evaluable patients showed stable disease and tumor shrinkage signals with tolerability consistent with Phase 1 (no Grade ≥3 TEAEs reported thus far) .
  • Management quote underscores momentum: “We were pleased to report initial safety and efficacy data… patients were preselected for CDKN2A and/or CDKN2B abnormalities” — Spiro Rombotis, CEO .

What Went Wrong

  • Going concern elevated: “there remains substantial doubt about our ability to continue as a going concern” absent additional capital; potential outcomes include curtailment or cessation of operations and possible bankruptcy .
  • Nasdaq listing risk: extension to December 24, 2024 for minimum stockholders’ equity compliance; failure to achieve equity minimum implies potential delisting .
  • UK R&D tax credits fell YoY to $0.2M (from $0.7M), consistent with lower qualifying R&D spend, reducing a non-dilutive cash source .

Financial Results

Income Statement and EPS – Quarterly progression and YoY

MetricQ1 2024Q2 2024Q3 2024YoY Q3 2024
Revenues ($USD Thousands)$29 $4 $10 $16 → $10
Operating Loss ($USD Thousands)$(4,355) $(3,644) $(2,177) $(6,845) → $(2,177)
Net Loss ($USD Thousands)$(2,946) $(3,257) $(1,957) $(6,032) → $(1,957)
Basic & Diluted EPS ($USD)$(2.27) $(0.72) $(0.18) $(0.48) → $(0.18)
UK R&D Tax Credit ($USD Thousands)$1,354 $412 $210 $668 → $210
Other Income (Expense), net ($USD Thousands)$55 $(25) $10 $145 → $10

Notes: Revenue remains minimal, making margin metrics not meaningful (nm) .

Operating Expense KPIs

MetricQ1 2024Q2 2024Q3 2024YoY Q3 2024
R&D ($USD Thousands)$2,802 $2,023 $950 $5,236 → $950
G&A ($USD Thousands)$1,582 $1,625 $1,237 $1,625 → $1,237
Total OpEx ($USD Thousands)$4,384 $3,648 $2,187 $6,861 → $2,187

Balance Sheet – Liquidity and liabilities

MetricDec 31, 2023Mar 31, 2024Jun 30, 2024Sep 30, 2024
Cash & Equivalents ($USD Thousands)$3,378 $2,798 $6,000 $2,982
Prepaid & Other Current Assets ($USD Thousands)$4,066 $2,037 $1,707 $1,931
Accounts Payable ($USD Thousands)$3,543 $5,200 $4,741 $4,126
Accrued & Other Current Liabilities ($USD Thousands)$4,618 $3,150 $2,445 $2,225
Stockholders’ Equity ($USD Thousands)$607 $(2,206) $999 $(970)
Total Assets ($USD Thousands)$8,805 $6,165 $8,190 $5,381

Margins vs estimates

MetricQ1 2024Q2 2024Q3 2024Consensus
Net Income Margin %nm nm nm Unavailable (S&P Global consensus unavailable)
EBIT Margin %nm nm nm Unavailable (S&P Global consensus unavailable)

nm = not meaningful due to immaterial revenue base .

Segment Breakdown

No reportable segments disclosed .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash runway2024Fund planned programs “into the fourth quarter of 2024” Fund currently planned programs “into the fourth quarter of 2024” Maintained
Nasdaq equity complianceThrough Dec 24, 2024Non-compliance noted Aug 26, 2024 Extension granted to Dec 24, 2024; risk of delisting if equity minimum unmet Extension
Revenue, margins, OpEx guidance2024None provided None provided No formal guidance

Earnings Call Themes & Trends

No Q3 earnings call transcript was found in company documents; prior press releases and 8-Ks inform trend analysis. We searched for earnings-call-transcript documents for CYCC and found none [ListDocuments result].

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
R&D execution (fadraciclib 065-101)Phase 2 PoC opened; RP2D determined; biomarker cohort and T-cell lymphoma cohort planned; ASCO data highlighted ENA 2024 poster with initial Cohort 8 safety/efficacy data; SD and tumor shrinkage signals in early evaluable patients Positive clinical momentum, early signals
Cost disciplineR&D and G&A reductions vs 2023 began in Q1; continued in Q2 R&D and G&A down materially YoY in Q3 Ongoing cost reductions
Funding/liquidityPrivate placement in May; cash $9.9M pro forma at Q1; runway into Q4 2024 Warrant exercises add ~$2.1M; runway reiterated into Q4 2024; going concern emphasized Incremental funds; still strained
Regulatory listing (Nasdaq)Equity deficiency noted (June 30 equity < $2.5M) Extension to Dec 24, 2024; delisting risk if equity minimum unmet Heightened listing risk
Biomarker strategy (CDKN2A/B)Precision medicine focus discussed; investigator interest Cohort 8 fully enrolled; initial data presented; early disease control signals Strategy advancing

Management Commentary

  • “Nasdaq has granted the Company an extension until December 24, 2024, to regain compliance with Nasdaq’s minimum stockholders’ equity requirement… If we do not secure such additional funding… our securities will be delisted from Nasdaq.” — Spiro Rombotis, CEO .
  • “We were pleased to report initial safety and efficacy data from twelve patients… preselected for CDKN2A and/or CDKN2B abnormalities.” — Spiro Rombotis, CEO .
  • “Although the Company has made substantial reductions in its expenses, there remains substantial doubt about our ability to continue as a going concern.” .
  • “We are encouraged by the interim data of cohorts 6 and 8… we continue to see good tolerability and signals of efficacy in patients with CDKN2A/B abnormalities…” — Spiro Rombotis, CEO .

Q&A Highlights

Q3 earnings call transcript was not available in company documents; therefore, no Q&A items can be extracted or validated. We searched for earnings-call-transcript and found none [ListDocuments result].

Estimates Context

  • We attempted to retrieve Wall Street consensus (EPS and revenue) via S&P Global; the query failed due to missing CIQ mapping for CYCC, so consensus estimates were unavailable (S&P Global consensus unavailable).
  • Without consensus, we cannot determine beats/misses. If coverage is re-established, near-term estimates should reflect: minimal revenue base; lower OpEx trajectory; UK R&D credits tied to reduced qualifying spend .

Key Takeaways for Investors

  • Operating discipline is materially reducing cash burn; Q3 OpEx down sharply YoY, but runway remains limited to Q4 2024 and management explicitly flagged going concern, elevating financing and execution risk .
  • Nasdaq listing risk is a tangible catalyst: extension to Dec 24, 2024 sets a hard timeline for equity remediation; any equity-raising, strategic transaction, or program milestone affecting stockholders’ equity can drive stock moves .
  • Clinical narrative is incrementally positive: Phase 2 Cohort 8 initial data presented with early disease control signals and acceptable tolerability; continued enrollment in T-cell lymphoma cohort offers another potential readout vector .
  • Liquidity actions post-quarter (~$2.1M gross proceeds via warrant exercises) provide short-term support but do not fully resolve runway constraints; expect further capital measures to be pivotal .
  • Absence of formal guidance and unavailable consensus estimates complicate near-term expectations; investors should focus on cash updates, listing status, and upcoming clinical data disclosures as primary catalysts .
  • Balance sheet equity remained negative at Sep 30 (-$0.97M), underscoring the need for capital or strategic transactions to meet Nasdaq equity thresholds .
  • Tactical implication: Trading likely driven by funding events, listing outcomes, and clinical updates rather than quarterly P&L, given de minimis revenue and development-stage status .

Additional supporting documents relevant to Q3 period:

  • Nasdaq equity compliance extension (Oct 24, 2024) .
  • ENA 2024 poster announcement and interim Phase 2 details (Oct 23, 2024) .
  • ENA presentation notice (Oct 9, 2024) .
  • Cohort 8 enrollment completion (Sept 25, 2024) .