All,
Recently I asked a friend of mine, who is by no means a biotech expert but has far more experience then I do, to see what he thought about CTIX. He also has a good friends of his who owns his own fund comapny and has many years experience in investing. Needless to say they performed a surface overview of the company financials and of course honed in on the lack of revenue, the salaries, and the stock compensation structure that is in place. Their review and opinon was that I should not rely on only Cellceutix provided information updates as to being the whole truth. They feel that Leo is just selling stocks and not actually pursuing drug development and trials as we all believe. They also advise I should get out my basis asap. If I want to ride the remaining shares out then I am safe.
I hate to admit it, but their advice put the fear in me. It is not like I didnt already know the financial situation of the company, but it shook me.....
SO....as a result I and my long time friend have made a concerted effort to do further due dillignece of our own. We decided we need to independently verify that things are proceeding as reported. One item found that is worth sharing is a confirmation from Dr. Reddy's that the manufacture of Prurisol is proceeding as Leo reports. This is the email I received this morning:
Dear Mr. XXXXXX,
My colleague, Gaurab Sengupta, forwarded me your mail. By way of introduction, I am the Manager, Business Development in the Boston, MA area for Dr. Reddy's Custom Pharmaceutical Services business. The organizational structure of Dr. Reddy's can be quite confusing. "CPS" is the business unit within Dr. Reddy's Laboratories that provides innovators with customized chemical and pharmaceutical development and manufacturing services. Our core competencies are based on over 25 years of internal pharmaceutical development experience.
Relative to your enquiry, I manage our relationship with Cellceutix. I can confirm that the CPS business is, in fact, assisting Cellceutix with the development and manufacturing of Prurisol. Cellceutix intends to initiate a Phase IIb study of Prurisol in mid-2013 for the treatment of psoriasis. Due to the confidential nature of the program I am not permitted to share any other details with you. I hope that this information suffices.
Thank you.
Sincerely,
Peter J. Mondolfi
Manager, Sales & Business Development
Custom Pharmaceutical Services
Dr. Reddy's Laboratories, Inc.
So, needless to say my mind is getting back to ease as we do this kind of indipendent research. I think that we are not gambling on a pump and dump stock we are back to the core gamble of: will the compounds work.
