Cellceutix Corp (OTCMKTS:CTIX) is a stock continuing to fight for respect from the OTC trading crowd. Shares of the company have been locked in Bear mode for the better part of the past 28 months. Clearly, if there’s anything that can drag it out of that mode, it will have to substantive. And for a biotech, that means positive pipeline results.
Monday saw some data that may hint at that type of dynamic. Specifically, the company presented positive results from their ongoing randomized, double-blind Phase 2 study of Brilacidin in the prevention and control of Oral Mucositis (OM) in patients receiving chemoradiation for treatment of Head and Neck Cancer. According to the release, preliminary interim analysis suggests a marked reduction in incidence of Severe OM (WHO Grade > 3) in patients treated with Brilacidin who received at least 55 Gy cumulative units of radiation.
Cellceutix Corp (OTCMKTS:CTIX) bills itself as a clinical stage biopharmaceutical company that develops small molecule therapies to treat cancer, antibiotics, and inflammatory disease.
The company focuses on the development of compounds, including Kevetrin, an anti-cancer compound that has completed Phase I clinical trial; and Prurisol, an anti-psoriasis drug candidate that is in Phase II clinical trial.
It also focuses on the development of Brilacidin, an antibiotic candidate for the treatment of acute bacterial skin and skin structure infection, oral mucositis, and inflammatory bowel disease, and ulcerative proctitis/colitis; and defensin-mimetics for otic infections, diabetic foot infections, and hidradenitis suppurativa indications.
In addition, CTIX owns compounds, such as KM 391 for the treatment of autism; KM 277 to treat arthritis; KM 278 for the treatment of arthritis/asthma; KM 362 to treat MS/ALS/Parkinson’s disease; KM-3174 for the treatment of cancer; and KM-732 for hypertensive emergency.
According to press materials, “Cellceutix is a clinical stage biopharmaceutical company developing innovative therapies in multiple diseases. Cellceutix believes it has a world-class portfolio of first-in-class lead drug candidates and is now advancing them toward market approval, while actively seeking strategic partnerships… Prurisol is a small molecule that acts through immune modulation and PRINS reduction. Cellceutix’s anti-cancer drug Kevetrin … has shown to induce activation of p53, often referred to as the “Guardian Angel Gene” due to its crucial role in controlling cell mutations. Cellceutix is in a Phase 2 clinical trial with its novel compound Brilacidin-OM for the prevention of oral mucositis in patients with head and neck cancer. Brilacidin-OM, a defensin mimetic compound, has shown in an animal model to reduce the occurrence of severe ulcerative oral mucositis by more than 94% compared to placebo. Cellceutix’s lead antibiotic, Brilacidin, has completed a Phase 2b trial for Acute Bacterial Skin and Skin Structure Infections, or ABSSSI. In an ongoing Phase 2 open label Proof-of-Concept trial, favorable interim results have been observed in the first cohort of patients treated with Brilacidin for Ulcerative Proctitis/Ulcerative Proctosigmoiditis (UP/UPS), two types of Inflammatory Bowel Disease (IBD).”
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According to the company’s release, “Preliminary efficacy and safety data from 19 patients who met the criteria for evaluation were reviewed. To be included, patients needed to have reached or passed the planned visit at the end of 5 weeks on study, and have received a cumulative radiation dose of at least 55 Gy. Patients receiving Brilacidin, as compared to patients on placebo, showed a markedly reduced rate of Severe OM (WHO Grade > 3). Additionally, Brilacidin was generally safe and well-tolerated.”
You might be asking, “given all this, why is the stock not showing more of a positive reaction to this news?”
We would suggest the answer to that question lies in the wording of the press release: Anything that is prefaced with “In a preliminary interim analysis…” is not something the company can report with conviction as firm. It’s an observation.
However, that doesn’t mean it won’t end up being representative. And therein lies the potential opportunityin CTIX.
Currently trading at a market capitalization of $126.1M, Cellceutix Corp has a significant war chest ($3.9M) of cash on the books, which compares with about $2M in total current liabilities. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $CTIX stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!