Roth starts Cyclacel Pharma at buy; PT $8

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Roth Capital Partners launched coverage of Cyclacel Pharmaceuticals (NASDAQ:CYCC) with a “buy” rating and $8 price target. The stock closed at $1.57 on September 4.

“We believe that Cyclacel, its clinical CDK inhibitor, CYC065, and its indirect target MCL-1, should all go into the watch-list of anyone interested in chronic lymphocytic leukemia (CLL),” writes analyst Jotin Marango.

“While the checkered past of the prior pipeline has left the company trading at cash in a penalty box, we believe that it is now time for the Street to revisit Cyclacel’s clinical prospects and valuation as the new lead candidate, CYC065, begins expanding its clinical footprint,” he added. 

Mr. Marango said Phase 1 data presented at the last meeting of the American Association of Cancer Research painted a “picture of a targeted agent with potentially broad applicability (clinical response in MCL-1, MYC, and cyclin-E tumors).”

He said CYC065 is headed at least into Phase 1b studies in relapsed/refractory CLL in combination with the BCL-2 inhibitor, venetoclax, and advanced leukemias.

Stephen Kilmer