Cellceutix Corp (OTCMKTS:CTIX) Ends Its Red Streak
After incurring losses for six sessions in a row yesterday Cellceutix Corp (OTCMKTS:CTIX) finally managed to reverse their direction. The stock soared by more than 26% and climbed to a close at $1.64 per share. The traded volume for the session reached 430 thousand shares surpassing the monthly average by quite a bit.
CTIX is a biopharmaceutical company developing innovative therapies in oncology, dermatology and antimicrobial applications. Unlike the majority of the other biopharmaceutical pennystocks the company has been making steady progress with the development of its drugs. On Tuesday they issued a rather lengthy update about their recent activities.
Cellceutix currently has four clinical programs. Their anti cancer drug Kevetrin is moving forward to a Phase 2 study, which the company hopes to initiate in the first half of 2016. Their lead antibiotic candidate Brilacidin completed successfully a Phase 2b clinical trial and now the company is planning the Phase 3 program that is going to include two Phase 3 clinical studies with approximately 700 subjects in each study.
At the start of the week CTIX submitted their financial report for the quarter ended September 30 and the numbers inside it are actually not that bad. A little over a month ago the company had:
• $7.77 million cash
• $8 million total current assets
• $7.5 million total current liabilities
• ZERO revenues
• $2.57 million net loss
The lack of revenues should not be that surprising having in mind that CTIX‘s drugs are still in development. The company has sizable cash reserves with another $28.2 million available through stock sales under the terms of the purchase agreement with Aspire Capital.
Investors should keep in mind that earlier this year the Rosen Law Firm filed a lawsuit against CTIX. Many of the allegations in the lawsuit seem similar to those made in an anonymous article posted on a popular stock investor website in August. In order to defend itself CTIX hired the Ashcroft Law Firm, which is led by Michael J. Sullivan, former United States Attorney for the District of Massachusetts.
The company may lack some of the more glaring problems that are typical for the biopharmaceutical pennystocks but their stock is still a risky choice. Do your own due diligence and adjust your trades accordingly.
