Markets Have Missed An Opportunity In Cellceutix Corp (OTCMKTS:CTIX)

Cellceutix Corp (OTCMKTS:CTIX) has been subject to some pretty harsh criticism as late, and is currently at the center of a legal dispute between it and an anonymous SA blogger called Mako Research surrounding a report it put out that seemingly claimed the company was a sham entity.We have said in the past that we are more than willing to give the company the benefit of the doubt in this situation, and we base this willingness on some due diligence conducted in response to the initial publication of what seemed to be a short hit piece.It seems, however, that certain operators are not so willing. We see this unwillingness as misguided, and in turn, see it as an opportunity to take advantage of a misbalanced market response to the company's fundamental developments. With this in mind, we've been on the look out for Cellceutix's reporting of any such developments, in anticipation of the short pressure weighing heavily enough on the company for the news to not make a difference, and offering up this misbalance as a chance to pick up shares at a discount ahead of the rebalancing.Well, we just got one, and it's about as big a news as we could have hoped for. Yet, as predicted, markets haven’t moved the company in its wake.The news relates to a proof of concept study that the company is currently undertaking in what we might deem its secondary Brilacidin program (although there's not too much between the primary of OM and the secondary of Ulcerative Proctitis/Ulcerative Proctosigmoiditis (UP/UPS) – the latter of which is in focus here.On March 21, the company put out a release detailing positive topline findings as part of an interim analysis from the above mentioned PoC study. It's a phase II, and it's investigating the impact of an enema administration form of Brilacidin in patients suffering from UP/UPS. The primary focus of the data that the company released was two cohorts from the trial (which we reiterate, is ongoing) – cohort A and cohort B. A received 50mg active compound, while B received 100mg.As per protocol, the patients had 6 weeks, 42 days, of daily treatment with Brilacidin, and were assessed at the end of the six weeks as per two endpoints – the first, the primary, looked at remission based on endoscopic findings, while the secondary, used what's called MMDAI (an industry standard severity measurement scale) to measure subjective impact.As per the interim analysis, all twelve patients from both cohorts experienced a beneficial response as measured by the just mentioned MMDAI scoring parameters.Clinical remission was defined as an improvement in stool frequency from baseline, a rectal bleeding sub score of 0 (so, in other words, no rectal bleeding) and endoscopy findings of mild, normal or inactive disease. This was the primary, and 6 patients across both cohorts (so, 6 out of 12) achieved this endpoint. That's means that 50% of patients basically had their condition cured. The other 50% had at least two of the three improvement points ticked, and were classed as partial remission as per the study protocol.It's difficult to understate how good these results are. Some of the standard of care treatments don't achieve remission rates this good, and these are the SOCs that cause side effects and that totally lose their therapeutic effect in a large number of patients; the SOCs that Cellceutix is trying to offer an alternative to.So as not to get too carried away, it's worth noting that this is PoC, albeit phase II PoC, and that Cellceutix has a number of other programs on which to focus (and in turn, on which it needs to spend cash). The potential for dilution is real, and this could weigh on the value of a position taken on the back of these numbers.That said, and even with the potential for dilution in play, we would expect at least some loading up on the back of these numbers. If PPS is anything to go by, and of course, it is, these expectations haven’t materialized.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.