Cyclacel Pharmaceuticals Reports Second Quarter Financial Results and Provides Business Update

Rhea-AI Summary

Cyclacel Pharmaceuticals (NASDAQ: CYCC) reported its Q2 2025 financial results and significant corporate developments. The company entered a major share exchange agreement with FITTERS Diversified Berhad, where Fitters Parent will exchange 100% of FITTERS Sdn. Bhd. for approximately 19.99% of Cyclacel's common stock, plus $1,000,000 in cash consideration.

Key financial highlights include cash position of $4.3 million as of June 30, 2025, up from $3.2 million in December 2024. The company raised $3 million through Series F Convertible Preferred Stock offering and implemented a 1-for-15 reverse stock split to meet Nasdaq requirements. Q2 2025 saw reduced R&D expenses of $0.1 million (vs $2.0 million in Q2 2024) and lower G&A expenses of $1.2 million (vs $1.6 million in Q2 2024), resulting in a net loss of $1.3 million.

Positive

• Cash position increased to $4.3M from $3.2M in December 2024
• Successfully raised $3M through Series F Convertible Preferred Stock offering
• Reduced operating expenses with R&D costs down by $1.9M and G&A expenses down by $0.4M year-over-year
• Net loss decreased to $1.3M from $3.3M in Q2 2024
• Strategic acquisition of FITTERS Sdn. Bhd. expanding company's business portfolio

Negative

• Implemented 1-for-15 reverse stock split to maintain Nasdaq listing requirements
• Loss of UK R&D tax credits due to liquidation of UK subsidiary
• Cash runway only extends into Q4 2025
• Significant reduction in R&D activities following UK subsidiary liquidation

Insights

Financial Analyst

Cyclacel executed strategic restructuring with reduced R&D costs, secured $3M funding, but cash runway remains limited through Q4 2025.

Cyclacel Pharmaceuticals is undergoing a significant strategic shift. The company has reduced quarterly R&D expenses dramatically from $2.0 million to just $0.1 million following the liquidation of its UK subsidiary in January 2025. This 95% reduction signals a complete deprioritization of its transcriptional regulation program, while development of plogosertib continues at a reduced pace.

The financial position shows some stabilization with cash increasing to $4.3 million from $3.2 million at year-end 2024, bolstered by a $3 million private placement through Series F Convertible Preferred Stock. However, the projected runway only extends into Q4 2025, indicating continued financial constraints despite cost-cutting measures. The company used $1.1 million in operating activities during Q2, which represents a significant reduction from previous quarters.

Two major corporate developments stand out: First, the 1-for-15 reverse stock split implemented in July to maintain Nasdaq compliance indicates previous share price deterioration. Second, the pending acquisition of FITTERS Sdn. Bhd. (Malaysian company) in exchange for 19.99% of Cyclacel's shares plus $1 million cash represents a substantial strategic pivot.

General and administrative expenses decreased by 25% to $1.2 million from $1.6 million year-over-year, though some savings were offset by severance costs and increased legal fees, likely related to the FITTERS transaction. The net loss improved to $1.3 million from $3.3 million in the same quarter last year, primarily due to the dramatic reduction in R&D expenses rather than revenue growth.

The loss of UK R&D tax credits following the subsidiary liquidation removes an important financial benefit that previously provided $0.4 million in the comparable quarter. This strategic restructuring appears aimed at extending runway while pursuing new business directions through the FITTERS acquisition.

KUALA LUMPUR, Malaysia, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ: CYCCP; "Cyclacel" or the "Company"), a biopharmaceutical company developing innovative medicines, today announced its second quarter financial results and provided a business update.

Highlights of the second quarter ended June 30, 2025, or in some cases shortly thereafter, include:

• In April, the Company announced that the Board of Directors of the Company declared a quarterly cash dividend of $0.15 per share on the Company’s 6% Convertible Exchangeable Preferred Stock, which cash dividend was paid on May 1, 2025, to holders of 6% Convertible Exchangeable Preferred Stock of record as of the close of business on April 29, 2025;

• In May, the Company announced entering into a share exchange agreement with FITTERS Diversified Berhad, a Malaysian publicly listed company (“Fitters Parent”) and FITTERS Sdn. Bhd., a Malaysia private limited company and wholly-owned subsidiary of Fitters Parent to effect a voluntary share exchange transaction whereby Fitters Parent will exchange all of its ownership interest in FITTERS Sdn. Bhd. representing 100% of all of the issued and outstanding capital shares of Fitters, for approximately 19.99 percent of all of the issued and outstanding shares of common stock of the Company on the closing date of the transaction. Following the closing of the transaction, FITTERS Sdn. Bhd. will become a wholly-owned subsidiary of the Company and Datuk Dr. Doris Wong Sing Ee, our Chief Executive Officer and Executive Director will be appointed as a director of Fitters and all of its subsidiaries;

• In June, the Board of Directors of the Company declared a quarterly cash dividend of $0.15 per share on the Company’s 6% Convertible Exchangeable Preferred Stock, which cash dividend was paid on August 1, 2025, to holders of record as of the close of business on July 21, 2025;

• Also in June, the Company entered into a securities purchase agreement with certain accredited investors who purchased from the Company an aggregate of 3,000,000 shares of Series F Convertible Preferred Stock, convertible into 0.218 shares of the Company’s common stock, at a purchase price of $1.00 per share for aggregate gross proceeds of $3,000,000, which transaction included the Company’s issuance of a series A common stock purchase warrant, series B common stock purchase warrant and series C common stock purchase warrant to each investor.

• In July, the Company implemented a one-for-fifteen reverse stock split effective on July 7, 2025 on which day the Company’s common stock began trading on a split-adjusted basis in an effort to meet the share bid price requirements of The Nasdaq Capital Market.

• Also in early July, the Company entered an amendment to the exchange agreement with Fitters Parent and FITTERS Sdn. Bhd. to provide that in addition to the shares of common stock of the Company, the Company will pay to Fitters Parent, as consideration, $1,000,000 or a mutually agreed upon amount at the closing of the transaction. Additionally, the parties agreed to extend the Final Date (as defined under the Exchange Agreement) to September 30, 2025. The Company has called a special meeting on September 4, 2025 to vote for approval of the transaction.
  
  

Second Quarter 2025 Financial Results

As of June 30, 2025, cash and cash equivalents totaled $4.3 million, compared to $3.2 million as of December 31, 2024.

Net cash used in operating activities was $1.1 million for the three months ended June 30, 2025. The Company estimates that its current cash resources will fund planned expenditure into the fourth quarter of 2025.

Research and development expenses were $0.1 million for the three months ended June 30, 2025, as compared to $2.0 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 $0.4 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 decreased by approximately $0.4 million from $1.6 million for the three months ended June 30, 2024 to $1.2 million for the three months ended June 30, 2025, due to lower operating costs of the company under current management. Savings for the quarter against prior year were $0.9M, but off‐set by one‐off legacy severance costs and increased legal fees.

Total other income (expenses), net, for the three months ended June 30, 2025, were broadly flat year on year.

United Kingdom research & development tax credits for the three months ended June 30, 2024, were $0.4 million. There were no research and development tax credits for the three months ended June 30, 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 June 30, 2025, was $1.3 million (including stock-based compensation expense of $7,000), compared to $3.3 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
								June 30,
									2025				2024
Revenues:
Clinical trial supply									-				4
Revenues								$	-			$	4
Operating expenses:
Research and development									68				2,023
General and administrative									1,249				1,625
Total operating expenses									1,317				3,648
Operating loss									(1,317	)			(3,644	)
Other income (expense):
Foreign exchange gains (losses)									(3	)			3
Interest income									2				(28	)
Other income, net									2				-
Total other income (expense), net									1				(25	)
Loss before taxes									(1,316	)			(3,669	)
Income tax benefit									(2	)			412
Net loss									(1,318	)			(3,257	)
Dividend on convertible exchangeable preferred shares									(20	)			-
Net loss applicable to common shareholders								$	(1,338	)		$	(3,257	)
Basic and diluted earnings per common share:
Net loss per share – basic and diluted (common shareholders)								$	(0.98	)		$	(172.18	)

 

CYCLACEL PHARMACEUTICALS, INC.
CONSOLIDATED BALANCE SHEET
(In $000s, except share, per share, and liquidation preference amounts)
						June 30,			June 30,
						2025			2024
ASSETS
Current assets:
Cash and cash equivalents						$	4,275		$	3,137
Prepaid expenses and other current assets							108			537
Total current assets							4,383			3,674
Property and equipment, net							1			3
Right-of-use lease asset							17			5
Non-current deposits							-			412
Total assets						$	4,401		$	4,094
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable						$	221		$	4,599
Accrued and other current liabilities							539			1,669
Total current liabilities							760			6,268
Lease liability							10			-
Total liabilities							770			6,268
Stockholders’ equity							3,631			(2,174	)
Total liabilities and stockholders’ equity						$	4,401		$	4,094

FAQ

What were Cyclacel Pharmaceuticals (CYCC) Q2 2025 financial results?

Cyclacel reported cash position of $4.3M, net loss of $1.3M, R&D expenses of $0.1M, and G&A expenses of $1.2M for Q2 2025. The company's cash is expected to fund operations into Q4 2025.

What is the FITTERS acquisition deal structure for Cyclacel (CYCC)?

Cyclacel will acquire 100% of FITTERS Sdn. Bhd. in exchange for 19.99% of Cyclacel's common stock plus $1M cash consideration. The transaction deadline is set for September 30, 2025, with a shareholder vote scheduled for September 4, 2025.

Why did Cyclacel Pharmaceuticals (CYCC) implement a reverse stock split in 2025?

Cyclacel implemented a 1-for-15 reverse stock split effective July 7, 2025, to meet the minimum share bid price requirements for continued listing on The Nasdaq Capital Market.

How much capital did Cyclacel (CYCC) raise in their 2025 preferred stock offering?

Cyclacel raised $3 million through the sale of 3,000,000 shares of Series F Convertible Preferred Stock at $1.00 per share, which included the issuance of series A, B, and C common stock purchase warrants.

What is Cyclacel's (CYCC) current cash runway?

Based on current cash resources of $4.3 million, Cyclacel estimates its cash runway will fund planned expenditures into the fourth quarter of 2025.