Biotechnology Stock on the Move; Cellceutix Corp. (CTIX)
Shares of Cellceutix Corp. (OTC: CTIX) have risen sharply in trading today after the biotechnology company made a major announcement related to its anti-cancer drug Kevetrin™.
Cellceutix, which focuses on the discovery of small molecule drugs to treat unmet medical conditions such as drug-resistant cancers and autoimmune disease, today reported that clinical trials for Kevetrin are progressing smoothly.
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Kevetrin, which is CTIX’s flagship anti-cancer drug, has the potential to become a major breakthrough in the treatment of solid tumors. In pre-clinical studies, the drug has shown the ability to regulate the p53 pathway and attack cancers which have proven resistant to existing cancer therapies. The FDA approved the Investigational New Drug (IND) application for Kevetrin on June 21, 2012.
CTIX is currently conducting clinical trials for Kevetrin. The trials are being conducted at Harvard University’s Dana-Farber Cancer Institute and partner Beth Israel Deaconess Medical Center. The company today reported that in the clinical trials, the cohort which started treatment with Kevetrin back in November has completed the initial cycle.
Dr. Krishna Menon, Chief Scientific Officer at Cellceutix, said that the clinical trials are progressing extremely well and right on schedule. Dr. Menon said that as CTIX awaits the lab reports, it is very encouraging that there has not been any toxic side effects that are commonly associated with chemotherapy at this point.
The fact that the clinical trial is right on schedule augurs well for a company like CTIX, which has limited cash resources. According to a recent filing from CTIX, the company had a cash balance of $124,865 at the end of September 30, 2012.
CTIX certainly needs to raise funding in the future to ensure that its clinical trials move forward smoothly. Back in May, 2012, the company signed a subscription agreement for Series A Convertible Preferred shares with an accredited investor for a total of $1 million. As of September 30, 2012, a total of $400,000 Series A Convertible Preferred shares were subscribed to and there remains a balance of $600,000 for CTIX to draw upon in installment funding per the agreement.
Given CTIX’s cash position, it is crucial that the company’s clinical trials remain on schedule in the future.
Apart from Kevetrin, Beverly, Massachusetts-based Cellceutix owns the rights to seven other drug compounds. However, the company is currently focusing its efforts and resources on Kevetrin and on Prurisol.
CTIX is developing Prurisol for the treatment of psoriasis. Last month, CTIX announced that it entered into an agreement with a European Union (EU) clinical site for a Proof-of-Concept (PoC) trial of Prurisol.
CTIX shares have risen sharply today as investors reacted positively to the announcement made earlier today. At last check, CTIX shares were trading 7.77% higher at $1.11 on above average volume of 625,558.
As we can see in the chart below, CTIX today broke through $1.10 resistance level. This is a bullish signal. The bullish trend is further confirmed by the MACD chart. The sto
