Cyclacel Pharmaceuticals Inc (CYCC) Spikes On Tang Capital Stake

Tang Capital Partners LP has taken a nearly 10% stake in Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC)

by Karee Venema

Published on Aug 22, 2016 at 11:15 AM
Updated on Aug 22, 2016 at 11:35 AM

After being halted earlier, Cyclacel Pharmaceuticals Inc (CYCC) was last seen up 36% at $9.50. Boosting the biotech stock is a recent Securities and Exchange Commission (SEC) filing which showed Tang Capital Partners LP took a 9.6% stake in CYCC -- making it the firm's second-largest shareholder -- and perhaps an M&A-related halo lift from sector peer Medivation Inc (NASDAQ:MDVN).

Regardless, today's bull gap has sent the shares soaring to levels not seen since late November, although the stock appears to be running out of steam near the round $10 mark. Meanwhile, as Wall Street awaits Cyclacel Pharmaceuticals' update on its lead cancer drug for acute myeloid leukemia (AML) -- due out in the fourth quarter -- traders have been upping the bearish ante of late. Although CYCC remains on the short-sale restricted list today following last Friday's swoon, short interest surged 62.2% in the most recent reporting period.

This skepticism toward Cyclacel Pharmaceuticals Inc (CYCC) isn't shared among analysts, though. While the stock has flown under the radar of most analysts, H.C. Wainwright has given the shares a "buy" rating and a $60 price target -- territory not charted since December 2013. Plus, the brokerage firm recently said that if "we crop AML from the picture and only view valuation fundamentally as a function of the other two clinical programs running, Cyclacel still emerges as attractive."

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