Cyclacel Pharmaceuticals Reports No Revenue and Improved Net Loss in Q1 2025

Cyclacel Pharmaceuticals, Inc. reported its financial results for the first quarter of 2025, revealing a significant shift in its operational and financial landscape. The company recorded no revenue for the three months ended March 31, 2025, a decrease from $29,000 in the same period of the previous year. This decline is attributed to the cessation of clinical trial supply revenue following the liquidation of its UK subsidiary, Cyclacel Limited, which was announced on January 24, 2025. The company’s operating expenses increased to $5.0 million, up from $4.4 million year-over-year, primarily due to heightened general and administrative costs associated with the change of control and strategic restructuring.

In terms of profitability, Cyclacel reported a net loss of $81,000 for the first quarter of 2025, a notable improvement compared to a net loss of $2.9 million in the same quarter of 2024. The reduction in losses was influenced by a gain of approximately $4.9 million from the deconsolidation of Cyclacel Limited, which positively impacted the company's financial position. As of March 31, 2025, Cyclacel's cash and cash equivalents stood at $3.5 million, an increase from $3.1 million at the end of 2024, reflecting the proceeds from recent financing activities.

Strategically, Cyclacel has focused its efforts on the development of its plogosertib clinical program, following the liquidation of its other drug development program, fadraciclib. The company repurchased certain assets related to plogosertib for approximately $0.3 million in cash. Additionally, Cyclacel entered into a securities purchase agreement with investor David E. Lazar, resulting in gross proceeds of $3.1 million from the sale of preferred stock. This transaction was part of a broader strategy to preserve cash and explore potential partnerships or acquisitions to enhance its operational capabilities.

Operationally, Cyclacel has undergone significant changes, including a reduction in its workforce and the closure of its UK subsidiary, which has led to a deconsolidation of its financial results. The company’s total liabilities decreased to $672,000 as of March 31, 2025, down from $6.3 million at the end of 2024, primarily due to the liquidation process. The company’s stockholders’ equity increased to $3.1 million, reflecting the gain from the deconsolidation and the issuance of new preferred stock.

Looking ahead, Cyclacel faces substantial challenges regarding its liquidity and ability to continue as a going concern. The company has indicated that it will need to secure additional funding to support its operations and clinical development plans. Management is actively exploring various financing options, including private equity and strategic partnerships, to ensure the continuation of its business activities. The company has expressed that without successful fundraising efforts, it may be forced to curtail operations or cease activities altogether.