Cyclacel Pharmaceuticals Announces Receipt of $2.9 Million R&D Tax Credit
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The receipt of a significant R&D tax credit from HMRC for Cyclacel Pharmaceuticals indicates a positive cash inflow which can bolster the company's financial position without diluting shareholder equity. The additional funds are likely to enhance the company's ability to sustain its R&D efforts, particularly in the development of its clinical candidates, oral fadraciclib and oral plogosertib. From a financial perspective, such tax credits are beneficial as they effectively reduce the net cost of R&D, potentially improving the company's net margins and earnings per share in the short-term.
Investors should note that the expected additional tax credit based on a rate change could further improve the company's financial outlook. However, reliance on tax credits can be a double-edged sword; while beneficial, they are subject to political changes and are not a sustainable substitute for revenue generation from product sales. Stakeholders should monitor the company's progress in advancing its clinical programs towards commercialization, as the long-term value of the company is contingent upon the successful development and market approval of its drug candidates.
The focus on precision medicine approaches for Cyclacel's clinical candidates is indicative of the current trend in oncology to tailor treatments to individual genetic profiles, which can significantly increase the efficacy of cancer therapies. The R&D tax credit could facilitate further research into these areas, potentially leading to breakthroughs that address oncology indications with large unmet medical needs. As Cyclacel continues to invest in R&D, the development of oral fadraciclib and oral plogosertib will be closely watched by the medical community for their potential to improve patient outcomes in cancer treatment.
It is important to understand that the journey from R&D to a marketable product in the pharmaceutical industry is fraught with high risks and uncertainties, including clinical trial failures and regulatory hurdles. The impact of the R&D tax credit should be seen as a supportive measure rather than a guarantee of future success. The effectiveness and safety profiles of the clinical candidates will ultimately determine their market potential and, by extension, the company's return on investment in R&D.
BERKELEY HEIGHTS, N.J., March 06, 2024 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "Cyclacel" or the "Company"), a biopharmaceutical company developing innovative medicines based on cancer cell biology, announced that it received
“The R&D tax credit has been an important source of non-dilutive capital supporting Cyclacel’s programs. We appreciate this governmental support as we evaluate potential precision medicine approaches for both our clinical candidates, oral fadraciclib and oral plogosertib, to address oncology indications with large unmet medical needs,” said Paul McBarron, Executive Vice President, Finance & Chief Operating Officer.
About Cyclacel Pharmaceuticals, Inc.
Cyclacel is a clinical-stage, biopharmaceutical company developing innovative cancer medicines based on cell cycle, transcriptional regulation, epigenetics and mitosis biology. The transcriptional regulation program is evaluating fadraciclib, a CDK2/9 inhibitor, and the epigenetic/anti-mitotic program plogosertib, a PLK1 inhibitor, in patients with both solid tumors and hematological malignancies. Cyclacel's strategy is to build a diversified biopharmaceutical business based on a pipeline of novel drug candidates addressing oncology and hematology indications. For additional information, please visit www.cyclacel.com.
Contacts
| Company: | Paul McBarron, (908) 517-7330, pmcbarron@cyclacel.com |
| Investor Relations: | Grace Kim, IR@cyclacel.com |
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FAQ
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