Cellceutix Corp (OTCMKTS:CTIX) Climbs Further Up
On Friday Cellceutix Corp (OTCMKTS:CTIX) continued to surge. The stock added 5.96% to its market price on a volume of 802.2 thousand shares. It hit a new 52-week high and closed at $3.38.
On Oct 23 CTIX issued a press release announcing results on some of its clinical trials. More precisely, the top-line results for the Phase 2b clinical ABSSSI trials. This news led to the positive sessions on Thursday and Friday. The PR disclosed that the trials commenced in February and came out positive, and because of that the company will begin Phase 3 ABSSSI trials in 2015.
The following day, Oct 24, CTIX filed an 8-K report. The report disclosed that on Oct 20 the board admitted a new company member. Dr. William James Alexander became CTIX‘s new COO effective Oct 27. Due to his new position in the company, he was given “50,000 shares and 50,000 stock options vesting during the next 12 months”.
CTIX filed its annual report on September 15. The 10-K covered the fiscal year ended June 30 and didn’t show anything that we didn’t already expect to see. CTIX reported no revenues, working capital deficit and a significant net loss, which for a pharmaceutical company with no products on the market yet, is hardly surprising.
In fact, CTIX will not release any products in the near future. The 10-K states that the drugs currently under development “are not likely to be commercially available for several years”. However, the worse part is that CTIX doesn’t expect to “complete the development of a product candidate for several years, if ever”. That “if ever” means that CTIX may never release drugs on the market, and that is something potential investors shouldn’t ignore.
As always, due diligence is advised when deciding whether or not to invest in a stock.
