Cellceutix Corp (OTCMKTS:CTIX): Here's What We're Watching

Cellceutix Corp (OTCMKTS:CTIX) has been highly active throughout November, having traded up from November 3 lows of circa $1 flat at the turn of the month, to current levels in the region of $1.4 currently – a 40% gain across the period. The company has a litany of catalysts set to hit press across the next twelve months, and a pipeline of assets that have the potential to generate blockbuster revenues if Cellceutix can successfully navigate the development pathway and get them through to commercialization. It's not yet failed a trial, and has a management team with a wealth of experience bringing these sorts of assets to market.There are some, however, that feel the company is a risk. Why? Because of the way it finances its trials. Before we get into the catalysts we are looking for going forward, and where we think the company is heading longer term, let's quickly address the finance issue.Basically, the company has an equity purchase plan in place with a company called Aspire Capital. Through the end of fiscal year 2016, which accounts for the twelve months to June 30, 2016, Cellceutix raised approximately $8.2 million through this agreement. For the three months ended September 30, 2016, again through its equity purchase agreement with Aspire, Cellceutix raised a further $1.9 million. Now, the shares issued to raise this capital are dilutive, yes. That's not ideal for shareholders. What we've got to remember, however, is that this is development stage biotech. Dilution is just something shareholders have to accept at this end of this space, and that it is coming by way of a structured plan for Cellceutix is actually a bonus. A large number of the company's peers are forced to raise ad hoc, by way of public issue or otherwise, and this is when things can get really dilutive. Even with Cellceutix issuing below market for the Aspire funds, it's getting a far better deal (and, in turn as are shareholders) than otherwise might be the case.Anyway, that out of the way, let's move on to the development assets.The primaries are Brilacidin (Inflammatory Bowel Disease), Brilacidin-OM (Oral Mucositis), Brilacidin (Anti-Infective), Kevetrin (Solid Tumors) and Prurisol (Chronic Plaque Psoriasis).We won’t go into too much detail for each asset, but we've broken down the specific catalysts we're watching over the coming twelve months for each. Here goes:By the end of December, this year, the company expects to have completed the first cohort dosing in phase IIa of Brilacidin for ulcerative proctitis. This one's only really relevant if Cellceutix puts out data (or at least an update) from the first cohort – and we expect it will.During the first half of 2017 (likely weighted towards the second quarter) the company plans to put out interim from the phase II evaluating the oral rinse Brilacidin-OM for treating and preventing chemoradiation-induced oral mucositis (OM) in head and neck cancer patients.Again during the first half of 2017 (and again, weighted towards the second quarter) the company will put out interim from another phase IIb, this time relating to the above mentioned Prurisol in psoriasis. This one's a big one in our opinion. A hit on the endpoint here has a medium to high double digit percentage point impact potential on Cellceutix's market cap.That’s the data, and there are two trials set to kick off, with both having the potential to serev up an upside revaluation as they commence.The first is a for phase IIa study of Kevetrin, in solid tumors. The second is a phase III to follow up on the anti infective Brilacidin phase II data mentioned above. This one's going to need some financing, so expect a bit of dilution (but as discussed, don't let it concern you too much) near term. Both trials should kick off late first quarter, early second, assuming the funding is in place.We will be updating our subscribers as soon as we know more. For the latest updates on CTIX, sign up below!Disclosure: We have no position in CTIX and have not been compensated for this article.