Shares of Cellceutix (OTCMKTS:CTIX) have been in a downtrend all year after being attacked by the shorts all year. This culminated in a massive hit piece by an anonymous blogger on the website Seeking Alpha back in August. Shares peaked at $4.74 in the beginning of last year and dropped all the way to $.94 in October. However, now shares look to have bottomed and management is fighting off the shorts and proving CTIX is the real deal.
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CTIX is developing treatments in oncology, dermatology and antibiotic applications. CTIX’s anti-cancer drug Kevetrin is currently in a Phase 1 clinical trial at Harvard Cancer Centers’ Dana Farber Cancer Institute and Beth Israel Deaconess Medical Center. In the laboratory Kevetrin has shown to induce activation of p53, often referred to as the “Guardian Angel Gene” due to its crucial role in controlling cell mutations.
CTIX is planning a Phase 2 clinical trial with its novel compound Brilacidin-OM for the prevention and treatment of Oral Mucositis. Brilacidin-OM, a defensin mimetic compound, has shown in the laboratory to reduce the occurrence of severe ulcerative oral mucositis by more than 94% compared to placebo.
CTIX’s anti-psoriasis drug Prurisol is presently in a bioequivalence crossover clinical trial in Miami, FL. Prurisol is a small molecule that acts through immune modulation and PRINS reduction.
CTIX’s key antibiotic, Brilacidin, is in a Phase 2b trial for Acute Bacterial Skin and Skin Structure Infections, or ABSSSI. Brilacidin has the potential to be a single-dose therapy or a dosing regimen that is shorter than currently marketed antibiotics for multi-drug resistant bacteria (Superbugs).
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CTIX has a lot of promise, but many of those hopes were crushed in August by a Seeking Alpha article by Mako Research. I always look at short pieces with a grain of salt because the modus operandi behind them is always to drive shares lower because the poster is short the stock. This is the case here with CTIX as Mako Research disclosed that "I/we are short CTIX." The worst part about this is that the market bought into this garbage piece and many innocent shareholders got hurt because of this article and the short sellers made a great deal of money.
The most damning allegations were that CTIX was nothing more than a shell company with no viable science. The article called for 96% downside in shares of CTIX. The article fails to provide any evidence backing this up. It's all allegations without any facts. The article even said that the company did not have a real office!
CTIX went on the offensive this month and had its annual shareholder's meeting at its corporate headquarters to show how incorrect the Seeking Alpha article was. According to CEO Leo Ehrlich:
"There was a lot of dialogue about corporate development, our clinical pipeline and advancing the rest of our portfolio, but the one thing that really struck me was all of the comments about the enormous size of the 100 Cummings Center office building. Most of the shareholders attending had never seen the building or our offices and lab within them in person and they were completely misled by the article of an anonymous blogger on Seeking Alpha alleging we operate out of an empty office building. It really speaks to the impact that such a malicious, frivolous publication can have to confuse investors and try to impede development of new drugs that are critical to the people that need them. These unethical, anonymous authors don't realize the actual damage they do. If they can make a dollar, they don't care about hurting thousands of people. Interacting with CTIX shareholders, seeing their reaction to our office building and listening to their disgust with Seeking Alpha article simply further fuels my passion to create a monumental success in healthcare and fight to see that justice is served to the individuals behind that article."
His response pretty much sums up our thoughts as well. We're expecting positive developments in CTIX's pipeline next year and see the potential for a giant short squeeze. The best way to repay the shorts is with success and a huge move higher in shares of CTIX. Don't miss out and sign up for our latest alerts on CTIX and all of our stock picks.
Disclosure: We one no shares of CTIX and were not compensated for this article.
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