CTIX Value Per Leo:

What valuation would you put on the company?

Leo Ehrlich: The valuation of any company is a reflection of potential future sales. As such, clinical trials will truly help us define where we stand. There is countless biotechnology companies listed on all the exchanges that do not have a product on the market that carry valuations that far, far exceed ours. The caveat is that many of those biotechs are targeting very specific diseases which, although the market potential can still be large, does not compare with the magnitude of the impact that our drug Kevetrin could have on the cancer industry. Apparently as a result of our potential and target patients, investors have made comparisons to companies such as Pharmassets, Inc. (NASDAQ:VRUS) and Medivation, Inc. (NASDAQ:MDVN) [Interviewers' NOTE: Market caps: Pharmassets $5.1 billion, Medivation $1.4 billion, Cellceutix $40 million] because of the possible impact of their drugs on the Hepatitis C and prostate cancer industries, respectively, even though neither have FDA approval yet. In all fairness to them, both are a couple years ahead of us in development, showing strong clinical data and have cash on their balance sheet. But, in all fairness to us, neither VRUS nor MDVN has ever had a share value as low as ours and our target market is significantly larger. By no means would I draw a comparison today to either, but it certainly does demonstrate the potential upside as to where we could be should clinical trials validate our contentions.