CYCLACEL PHARMACEUTICALS REPORTS FIRST QUARTER FINANCIAL RESULTS AND PROVIDES BUSINESS UPDATE

Rhea-AI Summary

Cyclacel Pharmaceuticals (NASDAQ: CYCC) reported Q1 2025 financial results and announced strategic changes. The company will now focus solely on developing plogosertib (plogo), having repurchased related assets for $0.3M. Following the liquidation of UK subsidiary Cyclacel Limited on January 31, 2025, the company deconsolidated its financials, resulting in a $5.0M gain in stockholders' equity. Due to funding challenges, Cyclacel entered an Exchange Agreement with FITTERS Diversified Berhad, exchanging shares for approximately 19.99% ownership to acquire Fitters Sdn. Bhd., a Malaysian fire safety equipment company. Q1 2025 financials show cash position of $3.5M, reduced R&D expenses of $0.8M (vs $2.8M in Q1 2024), increased G&A expenses of $4.2M, and a minimal net loss of $0.1M. Current cash is expected to fund operations into Q2 2025.

Positive

• Deconsolidation of UK subsidiary resulted in $5.0M gain in stockholders' equity
• Significant reduction in R&D expenses from $2.8M to $0.8M due to focused strategy
• Net loss decreased substantially from $2.9M in Q1 2024 to $0.1M in Q1 2025
• Cash position improved slightly to $3.5M from $3.2M in December 2024

Negative

• Company facing going concern issues due to lack of funding
• Cash resources only sufficient until Q2 2025
• Loss of UK R&D tax credits following subsidiary liquidation
• G&A expenses increased significantly from $1.6M to $4.2M
• Forced to seek strategic alternatives including potential merger or acquisition
• Company lost operational control over fadraciclib program due to UK subsidiary liquidation

Insights

Biotech Financial Analyst

Cyclacel faces severe financial distress, narrowing focus to plogosertib while exploring strategic alternatives amid going concern issues.

Cyclacel's Q1 results reveal a company in significant financial distress. The most alarming signal is management's explicit statement about analyzing "strategic alternatives... to continue as a going concern" - essentially acknowledging potential business viability issues with current cash runway only extending into Q2 2025.

The company has drastically narrowed its focus to a single asset - plogosertib - after deconsolidating its UK subsidiary Cyclacel Limited through liquidation, which housed its other lead candidate fadraciclib. This strategic retreat generated a $5 million accounting gain but eliminates a significant portion of the company's pipeline. While R&D expenses decreased from $2.8 million to $0.8 million year-over-year, G&A expenses ballooned from $1.6 million to $4.2 million due to one-time costs related to the company's control change.

Cash position remains critically low at just $3.5 million, with quarterly cash burn of $3.3 million, indicating Cyclacel is operating on financial fumes. Their transaction with FITTERS Diversified Berhad signals a dramatic pivot away from biopharma, moving toward fire safety equipment through the acquisition of Fitters Sdn. Bhd. This suggests management sees limited future in their current drug development pathway.

While net loss improved from $2.9 million to $0.1 million, this was driven by the one-time liquidation gain rather than operational improvements. The loss of UK tax credits further hampers future financial prospects. Essentially, Cyclacel is attempting a dramatic business transformation to survive rather than advancing its original drug development mission.

KUALA LUMPUR, MALAYSIA, May 15, 2025 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "Cyclacel" or the "Company"), a biopharmaceutical company developing innovative medicines, today announced its first quarter financial results and provided a business update.

“As part of the Company’s efforts to reduce operating costs it has determined to focus on the development of the plogosertib (“plogo”) clinical program only. Accordingly, on March 10, 2025, the Company repurchased certain assets related to plogo from Cyclacel Limited for approximately $0.3 million in cash, to allow us to continue our efforts on developing an alternative salt, oral formulation of plogosertib with improved bioavailability,” said Datuk Dr. Doris Wong, Chief Executive Officer. “Cyclacel Limited’s other drug development program, fadraciclib, is being marketed for sale by that entity’s liquidator in the U.K. pursuant to creditors voluntary liquidation of Cyclacel Limited announced in the London Gazette on January 31, 2025.”

“Upon the commencement of the liquidation of Cyclacel Limited, the Company lost operational and strategic control over Cyclacel Limited and thus its financial results have been deconsolidated from the Company effective January 31, 2025; as a result, the Company anticipates a significant decrease to research and development expenses for the year ended December 31, 2025 as we focus on plogo and have no further expenditures related to fadraciclib,” said Kiu Cu Seng, Chief Financial Officer. “The deconsolidated of our former subsidiary, Cyclacel Limited, resulted in a gain on deconsolidation, and thus an increase in stockholders’ equity of approximately $5.0 million, which we have reported in the Company’s Form 10-Q for the three months ended March 31, 2025.”

Due to the current difficult economic environment and our lack of funding to implement our business plan, we have begun to analyze strategic alternatives available to the Company to continue as a going concern. Such alternatives include raising additional debt or equity financing or consummating a merger or acquisition with a partner that may involve a change in our business plan. As a result, the Company entered into an Exchange Agreement with FITTERS Diversified Berhad on April 6, 2205, to exchange all of the ordinary shares owned by FITTERS in exchange for approximately 19.99% of the Company’s common stock to acquire FITTERS’ wholly-owned subsidiary, Fitters Sdn. Bhd., a Malaysia-based private limited company specializing in supplying, and trading various protective and fire safety equipment.

Financial Highlights

As of March 31, 2025, cash and cash equivalents totaled $3.5 million, compared to $3.2 million as of December 31, 2024.

Net cash used in operating activities was $3.3 million for the three months ended March 31, 2025,. The Company estimates that its current cash resources will fund planned programs into the second quarter of 2025.

Research and development expenses were $0.8 million for the three months ended March 31, 2025, as compared to $2.8 million for the same period in 2024. Expenditure for the transcriptional regulation program ceased as a result of the Company’s UK subsidiary, Cyclacel Limited, being liquidated on January 24, 2025. Research and development expenses relating to plogosertib decreased by $0.6 million relative to the respective comparative period whilst we continue to explore and develop an alternative salt, oral formulation with improved bioavailability.

General and administrative expenses increased by approximately $2.6 million from $1.6 million for the three months ended March 31, 2024 to $4.2 million for the three months ended March 31, 2025, due to several one-time costs associated with the change of control of the Company; primarily stock compensation expense of $1.4 million, D&O insurance costs of $0.7 million, compensation expense of $0.3 million and legal costs of $0.1 million.

Total other (expense) income, net, for the three months and year ended March 31, 2025, were $5.0 million, compared to $0.1 million for the same period of the previous year, primarily due to a $5.0 million gain on deconsolidation of the UK subsidiary.

United Kingdom research & development tax credits for the three months ended March 31, 2024, were $1.4 million. There were no research and development tax credits for the three months ended March 31, 2025, following the liquidation of the UK subsidiary and the subsequent loss of eligibility for recoverable tax credits as a result thereof.

Net loss for the three months ended March 31, 2025, was $0.1 million (including stock-based compensation expense of $1.6 million), compared to $2.9 million (including stock-based compensation expense of $0.2 million) for the same period in 2024.

About Cyclacel Pharmaceuticals, Inc.

Cyclacel is a clinical-stage, biopharmaceutical company developing innovative cancer medicines based on cell cycle, epigenetics and mitosis biology. The epigenetic/anti-mitotic program is evaluating 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. 

Forward-looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include, among other things, statements related to the efficacy and safety profile of fadraciclib in an incomplete clinical trial, Cyclacel’s future plans and prospects, Cyclacel’s anticipated cash runway and the planned timing of data results and continued development of fadraciclib . Factors that may cause actual results to differ materially include market and other conditions, the risk that product candidates that appeared promising in early research and clinical trials do not demonstrate safety and/or efficacy in larger-scale or later clinical trials, trials may have difficulty enrolling, Cyclacel may not obtain approval to market its product candidates, the risks associated with reliance on outside financing to meet capital requirements, the risks associated with reliance on collaborative partners for further clinical trials, development and commercialization of product candidates and Cyclacel’s ability to regain and maintain compliance with Nasdaq’s continued listing requirements, although no assurance to that effect can be given. You are urged to consider statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to our most recent Annual Report on Form 10-K and other periodic and other filings we file with the Securities and Exchange Commission and are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Cyclacel Pharmaceuticals, Inc.
Datuk Dr. Doris Wong Sing Ee
Chief Executive Officer
Tel: (908) 517-7330
Email: doris@cyclacel.com

© Copyright 2025 Cyclacel Pharmaceuticals, Inc. All Rights Reserved. The Cyclacel logo and Cyclacel^® are trademarks of Cyclacel Pharmaceuticals, Inc.

SOURCE:
Cyclacel Pharmaceuticals, Inc.

CYCLACEL PHARMACEUTICALS, INC. 
CONSOLIDATED STATEMENTS OF OPERATIONS (LOSS)
(In $000s, except share and per share amounts) 

		Three Months Ended March 31,
		2025				2024
Revenues:
Clinical trial supply			-				29
Revenues		$	-			$	29
Operating expenses:
Research and development			822				2,802
General and administrative			4,214				1,582
Total operating expenses			5,036				4,384
Operating loss			(5,036	)			(4,355	)
Other income (expense):
Foreign exchange gains (losses)			(8	)			1
Interest income			6				2
Gain on deconsolidation of subsidiary			4,947				-
Other income, net			10				52
Total other income (expense), net			4,955				55
Loss before taxes			(81	)			(4,300	)
Income tax benefit			-				1,354
Net loss			(81	)			(2,946	)
Dividend on convertible exchangeable preferred shares			-				-
Net loss applicable to common shareholders		$	(81	)		$	(2,946	)
Basic and diluted earnings per common share:
Net loss per share – basic and diluted (common shareholders)		$	(0.00	)		$	(2.27	)

CYCLACEL PHARMACEUTICALS, INC. 
CONSOLIDATED BALANCE SHEET 
(In $000s, except share, per share, and liquidation preference amounts)

		March 31,				December 31,
		2025				2024
ASSETS
Current assets:
Cash and cash equivalents		$	3,450			$	3,137
Prepaid expenses and other current assets			264				537
Total current assets			3,714				3,674
Property and equipment, net			1				3
Right-of-use lease asset			19				5
Non-current deposits			-				412
Total assets		$	3,734			$	4,094
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	114			$	4,599
Accrued and other current liabilities			549				1,669
Total current liabilities			663				6,268
Lease liability			9				-
Total liabilities			672				6,268
Stockholders’ equity			3,062				(2,174	)
Total liabilities and stockholders’ equity		$	3,734			$	4,094

FAQ

What is CYCC's current cash position and burn rate as of Q1 2025?

Cyclacel has $3.5M in cash as of March 31, 2025, with a net cash burn of $3.3M in Q1 2025. The company expects current cash to fund operations into Q2 2025.

Why did Cyclacel Pharmaceuticals deconsolidate its UK subsidiary in 2025?

Cyclacel deconsolidated its UK subsidiary due to Cyclacel Limited entering creditors voluntary liquidation on January 31, 2025, resulting in loss of operational and strategic control over the subsidiary.

What was the impact of CYCC's UK subsidiary liquidation on financial results?

The liquidation resulted in a $5.0M gain on deconsolidation, increased stockholders' equity, significant reduction in R&D expenses, and loss of UK R&D tax credits.

What strategic changes did Cyclacel (CYCC) announce in Q1 2025?

CYCC announced focusing solely on plogosertib development, repurchasing related assets for $0.3M, and entering an Exchange Agreement with FITTERS Diversified Berhad for approximately 19.99% ownership.

How did Cyclacel's operating expenses change in Q1 2025 compared to Q1 2024?

R&D expenses decreased from $2.8M to $0.8M, while G&A expenses increased from $1.6M to $4.2M, primarily due to one-time costs associated with company control changes.