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Monday’s Market Insights: Cyclacel Pharmaceuticals Inc (CYCC), DryShips Inc. (DRYS), New Concept Energy, Inc. (GBR), Paratek Pharmaceuticals Inc (PRTK)


Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) is the big winner today – largely thanks to optimism surrounding the company’s cancer drug candidate, CYC065. The company just announced that a poster presented by independent investigators at the American Society for Hematology meeting reported that CYC065 substantially inhibited growth, triggered apoptosis, and induced anaphase catastrophe in murine and human lung cancer cells with known high metastatic potential. This was in marked contrast to effects in immortalized pulmonary epithelial murine and human cells. CYC065 markedly inhibited migration and invasion of lung cancer cells and affected distinctive pathways involved in DNA damage response, apoptosis, cell cycle regulation and cell migration. Cyclacel shares closed today at $6.42, skyrocketing over 85%.

DryShips Inc. (NASDAQ:DRYS) shares inched closer to 52-week lows today, falling about 19%, after the global shipping transportation company announced another massive equity sale agreement with Kalani and acquisition of six vessels. According to the agreement with Kalani, DryShips could sell up to $226.4 million of its common stock to Kalani over a two-year period. That said, with a market cap of $139 million, shareholders in DryShips would face a dilution of almost 100%. In addition, DryShips has agreed to acquire six vessels for a total cost of $268 million. One of the vessels is an Aframax tanker, three are Kamsarmax drybulk vessels and two are very large gas carriers. The new vessels will be delivered to the company as soon as the second quarter of 2017, and all six will be delivered by year’s end. DryShips noted that the acquisition will be financed through a combination of cash on hand, liquidity under an existing senior secured credit line and new bank debt.

New Concept Energy, Inc. (NYSEMKT:GBR) shares jumped nearly 40% in after-hours trading Monday, after the company released better-than-expected fourth quarter and full year 2016 earnings report. During the three months ended December 31, 2016 the company reported net income of $641,000 or ($0.32) per share, compared to a net loss of $2,971,000 or ($1.53) per share for the same period ended December 31, 2015. For the full year ended December 31, 2016 the Company reported net income of $48,000 or ($0.02) per share, compared to a net loss of $2,622,000 or ($1.35) per share for the same period ended December 31, 2015. Operating expenses for the oil and gas operation were $1.2 million in 2016 and $1.8 million in 2015. This decrease was the result of an overall reduction in operating expenses as the Company has actively reduced expenses to compensate for a slowdown in the oil and gas operation.

Paratek Pharmaceuticals Inc (NASDAQ:PRTK) shares rose over 30% to $24.95 in after-hours trading, after the microcap acne medicine maker announced positive top-line results from a global, pivotal Phase 3 clinical study comparing its once-daily oral and IV, broad spectrum investigational antibiotic, omadacycline, to moxifloxacin in the treatment of patients with community-acquired bacterial pneumonia (CABP).

Cantor analyst Chiara Russo recently raised her price target for PRTK to $32 (from $28), after reviewing the clinical and commercial opportunity of omadacycline and following meeting with management. Russo noted, “We came away with renewed confidence that PRTK’s omadacycline is correctly dosed for success in the IV/Oral Phase 3 in ABSSSI, that the heritage of tetracyclines should not present any safety concerns and that PK/PD and in vitro data all point to a positive read-out for pneumonia. Given the lack of potent, broad-spectrum IV-oral antibiotics, especially in the CABP space, we believe PRTK is a compelling opportunity.”

 

 

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