Cyclacel Pharmaceuticals (CYCC) Makes Enemies Of Shareholders
Cyclacel Pharmaceuticals (CYCC) is selling down 11% on poor earnings and could drop below $1.
CYCC announced financial and operating results for the second quarter of 2009. The firm’s net loss for the quarter was $7.0 million or $0.34 per share. This net loss included a non-operating expense of a payment under guarantee of $1.7 million and restructuring costs of $0.4 million. This compared to a net loss of $8.5 million or $0.42 loss per share for the same period in 2008. As of June 30, 2009, the Company had $15.9 million in cash and cash equivalents excluding the $3.4 million gross proceeds from the registered direct offering completed on July 29, 2009.
Total revenues for the second quarter of 2009 were $0.3 million representing an increase of 48% compared to $0.2 million for the same period in 2008. These revenues were mainly attributable to sales of the Xclair® and Numoisyn® products.
The company has cut its cost in half over the course of the last year, from $10.1 million in Q2 2008 to $5.5 million in the most recent quarter.
Even if CYCC keeps cutting, it only appears to have enough cash to carry it until early next year, and the prospects of it having a sharp increase in revenue over the period are bleak.
The firm’s market cap is only $20 million which says a great deal about how little shareholders think of CYCC prospects
Douglas A. McIntyre
