Tuesday, January 14, 2014

Seeking Alpha: Cyclacel Still Steeped In Doubt

Around five months ago, I thought Cyclacel Pharmaceuticals (CYCC) looked like an interesting speculative biotech play, as the market seemed to be hugely pessimistic on a drug (sapacitabine) that had shown encouraging evidence of efficacy in a seriously under-treated patient population. Since that report (and two by Seeking Alpha contributor Scrying Biotech), the shares are up about 50% and I would argue that these shares are still an interesting speculation for the risk-seeking biotech investor.

To be very clear, I'm still not unreservedly bullish on these shares. I think bears will remain fixated on the risks represented by running a Phase III trial with an unapproved drug as a control, not to mention the more typical risk that the drug doesn't work. Likewise, there are risks of competitive products from other oncology companies including Celgene (CELG) and Sunesis (SNSS). But even with what I consider to be conservative assumptions, it would seem that the shares are undervalued and worth a look for very aggressive biotech investors.

Please continue here:
Cyclacel Still Steeped In Doubt

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