Cellceutix Corp (OTCMKTS: CTIX)
Cellceutix has been an ongoing poster child for the Bully Beatdown analysis. For months now, CTIX can’t seem to catch a break on any bit of good news, with the stock sitting uncomfortably at $1.16 a share, far lower than the when I bought it about a year ago when the stock was hovering in the $1.50 range.
At that time, CTIX was the victim of a blatant and erroneous Seeking Alpha blog, had not released clinical trial results and had not yet hired some new key management positions to take CTIX to the next level.
Regardless that NONE of those items had been settled at the time, CTIX share price was still almost 20% higher than it is today. At some point, this Bully Beatdown has got to end.
CTIX Is Far Better Than SP Indicates
First off, that pointless and frivolous class action lawsuit was thrown out in hard fashion by the Courts, sending a clear message to Rosen Law Firm that the proceeding was mired in flawed research and had little to no merit, causing it to be dismissed in its entirety, never to be raised again by the vultures at Rosen. The judge is even considering punitive damages against the firm for filing such a frivolous case and that decision is still pending before the court. Regardless, the share price reacted only slightly positive to the dismissal news, which makes little to no sense to the investment world.
Maybe if the judge awards some cash to CTIX as a forced apology from Rosen, the stock will react favorably. CTIX needs cash and the only method in place to raise it is by using one of those “at the market” funding vehicles to sell shares and raise cash. I have always been skeptical of those supposed good samaritan deals, as I just do not believe that a potential cash call would entice the lender to allow the shares to run up far higher than what they would be comfortable paying for a share. If CTIX ran to $10 bucks a share and they quickly told Aspire to purchase shares, Aspire would be in a very precarious position. It’s for that reason that I believe that Aspire, the guys that are willing to purchase CTIX shares are also the ones keeping the share price depressed.
Other than the dismissal of the suit, CTIX should be given at least double the current value based on its current trial results for both Kevetrin and Purisol.
Kevetrin And Purisol
Kevetrin has been demonstrating excellent results in its clinical stage trial. Kevetrin targets solid tumors. Kevetrin is a small molecule that has demonstrated the potential of becoming a breakthrough cancer treatment by activating the p53 protein. The p53 protein has a critical role in controlling cell mutations. Thus, what Kevetrin does is to permit the normal function of the p53 pathway, allowing the body to perform its natural anti tumor defense mechanisms to ward off tumor growth. CTIX will be initiating a phase 2a trial of Kevetrin in Platinum-Resistant Ovarian Cancer, with patients receiving more frequent dosing at higher levels and then will be subsequently followed by normal standard of care treatment. Additionally, Kevetrin has been granted Orphan Drug Designation by the FDA to treat Ovarian and Pancreatic cancers.
But, even with the Orphan Status combined with the encouraging phase 1 and 2 results, the stock has not caught even a slight bounce from the promise already demonstrated by Kevetrin
Purisol is another strong candidate that CTIX has already demonstrated in clinical trials that it can treat psoriasis-associated conditions. Purisol has been successful in two clinical trials and has shown results that even surpass the current best standard of care. Plus, Purisol is an orally administered medication, a far better method of treatment than the current alternatives which require frequent doctor visits and uncomfortable side effects.
Purisol acts through immune modulation, and it is a novel dermatology drug candidate that has been granted the FDA’s 505(b)2 development approach. This process streamlines the approval process by allowing the drug developer to utilize data from previously approved medications. Thus, CTIX is not put in a position whereby they will need to re-prove all of the efficacy standards of a specific ingredient in the dosage. The 505(b)2 saves considerable time and money, but, investors would not know that from the share price.
Even with Purisol adding on extraordinary results during its clinical trials to date, the share price could care less. Then, when investors combine Purisol to Kevetrin, it makes absolutely no sense for the stock to be trading at current levels.
There is some good information at the CTIX website that can provide some in-depth analysis of how each of these compounds work, just believe me when I tell you that CTIX at these levels is the Bully Beatdown of the year.
CTIX Going Forward
CTIX will eventually rebound. From what I have read from the trial results, the results will be easily duplicated in a phase 2 and phase 3 trial , if required. Both Kevetrin and Purisol are doing everything expected and neither has shown any deficiency against current standard of care, nor has either elicited any concern over safety or adverse effects.
As far as the future goes, CTIX may continue to languish until they either get some main street funding agreements or bite the bullet and take the cash from Aspire at these levels. In my humblest of opinions, once Aspire is out of the way, the stock will most likely recover toward old time highs and begin to trade like a company that is on the verge of having two products approved that will significantly enhance the value of the company.
The share price is being depressed for a reason and only the market makers know the real answer. At $1.16 a share, the downside is most likely limited, except for some year end tax loss selling. However, even if the stock trades lower, it can only be a matter of time before it can bounce back higher.
I don’t mind getting beaten down once in a while, but for CTIX to be trading at these levels, management should be extremely embarrassed. It may take another month or so before CTIX gains some traction to the upside, but I expect that eventually CTIX will grow its second set of teeth and finally grow up in price.
[Image Courtesy of Wikipedia]