Cellceutix Corp (OTCMKTS:CTIX) Shares May be Hinting at Something Important

Cellceutix Corp (OTCMKTS:CTIX) Shares May be Hinting at Something Important


Cellceutix Corp (OTCMKTS:CTIX) is a micro-cap stock that has grabbed hold of the attention of traders during the stock’s recent bounce. The key catalyst behind the action is the company’s recent corporate update, wherein investors were finally given some concrete timing for expectations related to the company’s core pipeline assets, Prurisol, Kevetrin, and Brilacidin.

Each drug is pushing into a major open end market and could conceivably see significant market presence if the gauntlet of regulatory hurdles is navigated effectively. Prurisol is targeting the Psoriasis market and is involved in a Phase 2b trial with new signification information expected by 3Q 2017. Kevetrin is targeting Ovarian Cancer and is expected to complete its Phase 2a trial during the second half of this year. And Brilacidin is gunning for the Oral Mucositis market with an expected completion of its Phase 2 trial also in the 2H 2017.

Cellceutix Corp (OTCMKTS:CTIX) bills itself as a clinical stage biopharmaceutical company that develops small molecule therapies to treat cancer, antibiotics, and inflammatory disease.

As noted above, 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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The key here is to note the explosion off the lows in recent trading as the market digests the new update. As we see it, the market likes a sense of concrete timeframes for discounting future potential. This update sets some timeframe in place so market participants realize they are trading this stock potentially just a few weeks ahead of what could be a significant market moving event. From what we can see, the key dates are all potentially set starting in July.

According to the company’s management discussion, the company anticipates that future budget expenditures will be approximately $14 million over the next 12 months, including approximately $10 million for clinical trials. That further suggests an expectation at this point for trials beyond the current slate, which implies they are seeing strong signs as current trials progress.

“We are extremely proud of our accomplishments to date and are thrilled at the company’s prospects going forward into the latter half of 2017,” said Leo Ehrlich, Chief Executive Officer of Cellceutix. “Within a matter of months, we anticipate completing multiple mid-phase clinical trials for indications in areas with serious unmet medical needs. Based on highly encouraging clinical data received so far, we look forward to sharing complete clinical results with shareholders, members of the pharmaceutical industry interested in our drug candidates, and the public at large, to further establish the true potential of our clinical pipeline.”

“Much-needed drugs and tremendous value creation await patients and shareholders alike should we continue to deliver compelling trial results,” commented Arthur P. Bertolino, MD, PhD, MBA, President and Chief Medical Officer at Cellceutix.

Earning a current market cap value of $133.2M, CTIX has a significant war chest ($5.6M) of reported cash on the books, which must be weighed relative to about $2M in total current liabilities. The company is pre-revenue at this point. As more color becomes clear on the name, we will review the situation and update our take. 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!

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