Full Press Release Details
CYCLACEL PHARMACEUTICALS REPORTS FOURTH QUARTER AND
FULL YEAR 2009 FINANCIAL RESULTS
Conference Call Scheduled March 23, 2010 at 4:30 p.m. Eastern Time
BERKELEY HEIGHTS, NJ March 23, 2010 Cyclacel Pharmaceuticals, Inc. (NASDAQ: CYCC, NASDAQ:
CYCCP; Cyclacel or the Company ) announced today financial results for the fourth quarter and
year ended December 31, 2009. Cyclacel also provided an overview of its recent achievements and
planned 2010 milestones.
The Company s net loss for the fourth quarter of 2009 was $4.3 million or $0.18 per share, compared
to a net loss of $7.9 million or $0.39 per share for the fourth quarter of 2008. For the year
ended December 31, 2009, the Company reported a net loss of $19.6 million or $0.88 per share,
compared to a net loss of $40.4 million or $1.98 per share for the year ended December 31, 2008. As
of December 31, 2009, cash and cash equivalents totaled $11.5 million.
Fourth Quarter 2009 and Recent Highlights
Cyclacel is developing sapacitabine as an innovative, orally-available agent to serve the unmet
medical need of elderly patients with AML, said Spiro Rombotis, President and Chief Executive
Officer of Cyclacel. The Company achieved an important milestone during the first quarter of 2010
with the submission of an SPA for a randomized Phase 3 registration study of sapacitabine in
elderly patients with AML. In addition, the Company continued to work towards advancing other
indications for sapacitabine, including MDS and lung cancer both of which are in Phase 2, and also
realizing value from the rest of its pipeline.
Cyclacel s Milestones for 2010
Fourth Quarter and Full Year 2009 Financial Results
For the fourth quarter of 2009, Cyclacel reported a net loss of $4.3 million or $0.18 per share,
compared to a net loss of $7.9 million or $0.39 per share for the fourth quarter of 2008. Total
research and development (R D) expenses in the fourth quarter of 2009 were $2.6 million compared to
$3.2 million in the fourth quarter of 2008. The decrease in R D expenses in the fourth quarter of
2009 compared to the fourth quarter of 2008 was primarily due to lower employment and related costs
following the workforce reduction in the second and third quarters of 2009 and to a lesser extent
the completion of patient enrollment in October 2008 of the Phase 2 trial for AML.
Total selling, general and administrative expenses (SG A) amounted to $1.8 million in the fourth
quarter of 2009 compared to $4.0 million for the fourth quarter of 2008. The decrease is primarily
due to lower employment and related costs following the workforce reductions.
For the year ended December 31, 2009, Cyclacel reported a net loss of $19.6 million, or $0.88 per
share, compared to a net loss of $40.4 million, or $1.98 per share for the year ended December 31,
2008. Total net sales of Xclair Cream and Numoisyn products were $0.9 million in 2009 compared to
$0.8 million in 2008. Total R D expenses for the year ended December 31, 2009 were $9.8 million
compared to $18.9 million for the year ended December 31, 2008. This $9.1 million reduction is due
to the implementation and execution of our announced cost containment efforts in September 2008
which eliminated or reduced the costs of all programs other than those related to sapacitabine
clinical development. Total SG A expenses for the year ended December 31, 2009 were $8.6 million
compared to $15.4 million for the year ended December 31, 2008. The decrease was a result of the
cost saving measures first established in September 2008 and then continued during the second and
third quarters of 2009 which were primarily related to the workforce reductions. During 2008,
there was a charge for goodwill and intangible impairment of $7.9 million with no corresponding
charge in 2009 recognized as the assets were fully impaired during the third quarter of 2008. Cash
used in operations for the year ended December 31, 2009 was $15.2 million compared to $29.9 million
The Company recorded a gain on the change of valuation of warrants of $3.5 million during 2008
compared to a charge of $0.3 million during 2009. This was a result of an overall lower stock price
during 2009 compared to 2008 stock price levels. The Company recorded interest income of $0.1
million in 2009 compared to $1.4 million in 2008. This reduction resulted from the reinvestment of
maturing short-term investments into cash and cash equivalents in 2009, which have a lower interest
yield, for security purposes together with lower average cash, cash equivalent and short-term
investment balances during 2009 compared to 2008. During 2008 there were unfavorable foreign
exchange movements of approximately $4.5 million compared to $0.1 million during 2009. The decrease
is attributable to the change in accounting for the Company s intercompany loans. As a result,
starting in the fourth quarter of 2008, the Company now recognizes changes in intercompany loans as
other comprehensive income on the consolidated balance sheet as the repayment of intercompany loans
is not expected in the foreseeable future.
Cash and cash equivalents totaled $11.5 million as of December 31, 2009. Cyclacel expects its cash
resources, together with the proceeds from recent financings, will be sufficient to meet its
anticipated short-term working capital needs and fund current operations, including on-going
sapacitabine clinical trials, for at least the next twelve months.
In November 2009, Cyclacel amended the Kingsbridge Capital Limited Committed Equity Financing
Facility (CEFF) and subsequently raised approximately $1.0 million in December 2009. As the Company
did not declare dividends on its preferred stock for several quarters during the fiscal year 2009,
the Company will not be able to use its Registration Statement on Form S-3 upon the filing of its
Annual Report on Form 10-K for the year ended December 31, 2009, which covers the shares subject to
the CEFF and therefore it may not be able to access the CEFF until such time as an effective
registration statement covering such shares be in place.
The Company also announced that certain senior executives of the Company have adopted a trading
plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, as part of their
individual long-term strategy for asset diversification and liquidity. Rule 10b5-1 permits
corporate officers, directors and others to adopt written, pre-arranged stock trading plans when
they are not in possession of material, non-public information. These plans allow insiders to have
shares sold for their accounts over a period of time, in order to minimize the market effect of
stock sales, regardless of any material, non-public information they may receive after adopting
Conference call and Webcast Information:
Cyclacel will conduct a conference call on March 23, 2010 at 4:30 p.m. Eastern Time to review the
quarterly and year-end 2009 results. Conference call and webcast details are as follows:
Conference call information:
US/Canada call: (877) 493-9121/ international call: (973) 582-2750
US/Canada archive: (800) 642-1687 / international archive: (706) 645-9291
Code for live and archived conference call is 63824576
For the live and archived webcast, please visit the Corporate Presentations page on the Cyclacel
website at www.cyclacel.com. The webcast will be archived for 90 days and the audio replay for 7
About Cyclacel Pharmaceuticals, Inc.
Cyclacel is a biopharmaceutical company dedicated to the discovery, development and
commercialization of novel, mechanism-targeted drugs to treat human cancers and other serious
disorders. Three orally-available Cyclacel drugs are in clinical development. Sapacitabine
(CYC682), a cell cycle modulating nucleoside analog, is in Phase 2 studies for the treatment of
acute myeloid leukemia in the elderly, myelodysplastic syndromes and lung cancer. Seliciclib
(CYC202 or R-roscovitine), a CDK (cyclin dependent kinase) inhibitor, is in Phase 2 studies for the
treatment of lung cancer and nasopharyngeal cancer and in a Phase 1 trial in combination with
sapacitabine. CYC116, an Aurora kinase and VEGFR2 inhibitor, is in a Phase 1 trial in patients
with solid tumors. Cyclacel s ALIGN Pharmaceuticals subsidiary markets directly in the U.S.
Xclair Cream for radiation dermatitis, Numoisyn Liquid and Numoisyn Lozenges for xerostomia.
Cyclacel s strategy is to build a diversified biopharmaceutical business focused in hematology and
oncology based on a portfolio of commercial products and a development pipeline of novel drug
candidates. Please visit www.cyclacel.com for additional information.
Forward-looking Statements