The Biotech Bump: Cyclacel Pharmaceuticals
Shares of Cyclacel Pharmaceuticals (NASDAQ: CCYC) are trading higher on the session by 1.74%, at $1.14. The biotech stock, which focuses primarily on the development of orally available anticancer agents, has been drifting lower for the past three months and is trading just off of its 52-week low (of $1.12).
Cyclacel Pharmaceuticals tested that level and bounced off of it earlier in the session, which could indicate that shares are ready to rebound. Shares are oversold and well off of the 50-day and 200-day moving averages.
Notably, the company just completed a round of financing, where it sold 7.62 million shares at $1.36; that offering, done on July 7th, should be worked off by now, giving bulls confidence and dilution risk is off the table for quite some time.
Technically, Cyclacel Pharmaceuticals could very easily (And very quickly) rebound to the 50-day moving average, around $1.30. With shares just $0.02 off the 52-week low, the risk reward in the name is massively good.
Cyclacel Pharmaceuticals, Inc. is a development-stage biopharmaceutical company engaged in the discovery, development and commercialization of mechanism-targeted drugs to treat human cancers and other serious disorders.
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