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Cyclacel Pharmaceuticals , Inc. (NASDAQ:CYCC), a biopharmaceutical company with a market capitalization of $74.79 million, has completed the acquisition of specific assets associated with Plogosertib, a cancer treatment drug, from its United Kingdom-based subsidiary, Cyclacel Limited, which is in liquidation. According to InvestingPro data, the company faces financial challenges with a weak health score of 1.32 and negative EBITDA of $15.52 million. The transaction, which took place on Monday, involved a purchase price of £250,000, excluding VAT.
The assets acquired pertain to Plogosertib, a polo-like kinase 1 (PLK 1) inhibitor, which is under development for the treatment of esophageal cancer and acute leukemia. Cyclacel Pharmaceuticals agreed to the terms with the liquidators of Cyclacel Limited, effective as of January 24, 2025, to buy these assets, which also include patent rights related to the drug. The company’s stock currently trades near its 52-week low of $0.29, having declined by 87.84% over the past year.
In addition to the acquisition, Cyclacel Pharmaceuticals has committed to a future cash-only disposal of the assets. Should such a disposal occur, the company is obliged to pay half of the surplus gained from the sale to Cyclacel Limited within two weeks of receiving the payment. The surplus is defined as 50% of the difference between the disposal price and the higher of either the purchase price or the purchase price plus direct development costs incurred post-closing.
The company has also entered into a Patent Assignment Agreement, securing all rights, title, and interest in the patent rights related to Plogosertib from Cyclacel Limited.
The details of the Purchase Agreement and the Patent Assignment Agreement were outlined in an 8-K filing with the U.S. Securities and Exchange Commission. The acquisition aligns with Cyclacel Pharmaceuticals’ strategic focus on cancer therapeutics, although the full impact on the company’s operations and financial position will depend on the future development and potential disposal of the acquired assets. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report, providing detailed analysis of the company’s financial health, valuation metrics, and growth prospects.
This news is based on a press release statement and the factual information provided in the SEC filing.
In other recent news, Cyclacel Pharmaceuticals has reported several significant developments. The company amended a key investment agreement with its interim CEO, David Lazar, allowing him to purchase up to $8 million of Cyclacel’s common stock in private placement offerings. This agreement includes a six-month lock-up period for any shares acquired. Additionally, Cyclacel has made changes to its corporate structure, removing ownership limitations on its Series C and Series D Convertible Preferred Stock, which could pave the way for more significant investments. The company also increased its authorized common stock from 100 million to 250 million shares, a move that might provide flexibility for future financing or acquisitions.
In another strategic decision, Cyclacel announced the voluntary liquidation of its UK subsidiary, Cyclacel Limited, to reduce operating costs and focus on key drug development. This liquidation is expected to increase Cyclacel’s stockholders’ equity by approximately $5.6 million. The company plans to acquire plogosertib, a drug in Phase 1 clinical studies, from the liquidators and develop a new oral formulation. Furthermore, Cyclacel corrected a previous misstatement regarding board appointments, clarifying that David Lazar was not appointed to the board but had the right to nominate a single member. These recent developments were detailed in filings with the Securities and Exchange Commission.
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