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Cyclacel (CYCC) to Report Q2 Earnings: What's in the Offing?

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Investors will focus on updates on its novel CDK inhibitor, fadraciclib, when Cyclacel Pharmaceuticals, Inc. (CYCC - Free Report) reports second-quarter 2020 results.

Cyclacel’s stock has lost 66.8% in the year so far against the industry's growth of 7.4%.

 

The company beat earnings expectations by 47.14% in the last reported quarter. Over the trailing four quarters, it surpassed earnings estimates on two occasions and missed in the other two, the average surprise being 14.77%.

Let us see how things have shaped up prior to this announcement.

Factors in Focus

Cyclacel is a clinical-stage biopharmaceutical company developing innovative cancer medicines based on cell cycle, transcriptional regulation and DNA damage response biology. Being a clinical-stage company, the focus is primarily on pipeline progress.

The company currently has three programs in development. The transcriptional regulation program is evaluating fadraciclib as a single agent in solid tumors and in combination with venetoclax in patients with relapsed or refractory AML/MDS and CLL. The DNA damage response program is evaluating an oral combination of sapacitabine and venetoclax in patients with relapsed or refractory AML/MDS. An investigator-sponsored trial (IST) is evaluating an oral combination of sapacitabine and olaparib in patients with BRCA mutant breast cancer. The anti-mitotic program is evaluating CYC140, a PLK1 inhibitor, in advanced leukemias/MDS patients.

The primary focus is on the transcriptional regulation program, wherein the company is evaluating fadraciclib in multiple studies.

Cyclacel had previously reported that a heavily pretreated patient with MCL1 amplified endometrial cancer achieved a radiographically confirmed partial response (PR) after a month and a half on fadraciclib 213mg. This patient continues with the therapy and a reduction of 79% has been witnessed in her target tumor lesions after nine months. An additional patient with cyclin E amplified ovarian cancer achieved stable disease with 29% tumor shrinkage after approximately four months on the candidate at 213mg. Consequently, the company is designing a phase I/II precision medicine study to further evaluate fadraciclib as monotherapy and in combinations in patients with advanced solid tumors. Updates on the same are expected when it reports second-quarter results.

Updates on other ongoing studies will also be in focus.

Meanwhile, R&D expenses were $1.1 million in the first quarter and the same is likely to have been higher in the second quarter due to ongoing studies.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Cyclacel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP for Cyclacel is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Translate Bio (TBIO - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

uniQure (QURE - Free Report) has an Earnings ESP of +60.69% and a Zacks Rank #2.

Arena Pharmaceuticals, Inc. (ARNA - Free Report) has an Earnings ESP of +12.88% and a Zacks Rank #3.

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