Before the market opened this morning after the Labor Day weekend, Cellceutix (OTC: CTIX) announced that it had selected Dr. Reddy’s Laboratory (NYSE: RDY) to manufacture the drug Purisol for the treatment of psoriasis. Cellceutix plans to commence phase two and three clinical trials upon completion of the manufacturing process. In tests involving mice, Purisol demonstrated its effectiveness as compared to the common treatment using the drug methotrexate. Psoriasis is an autoimmune disease that affects the skin. Health official estimate 125 million people worldwide have the disease. The company also gave an update to shareholders concerning the progress of clinical trials involving its drug Kevetrin. The trials for the anti-cancer treatment had been delayed due to a change in protocol, which needed regulatory approval before trials could begin.
Buyers clamored for shares of Cellceutix on the opening bell. The stock opened at $0.67, or four cents higher than the closing price on Friday. Share prices dipped several times in the morning to a session low of $0.65. During the lunch hour on the east cost, buyers managed to push the stock to an intraday high of $0.68. Shares finished the day right where they began the new week at $0.67 for a gain of 6%. Trader’s hands must have looked a little red at the end of the day as the 564,000 shares traded marked the heaviest volume in the last 52 weeks. On an average day the stock trades over 72,000 shares.
After spending the entire spring hiding in a narrow trading range, shares of Cellceutix perked up when the company released news in late May that its solid-tumor-fighting, anti-cancer drug Kevetrin holds potential in the treatment of brain cancer. The stock jumped 25 cents and traded as high as $0.75 in the second week of June. Later in the month the company received FDA approval to proceed with Phase 1 clinical trials for Kevetrin. The stock retreated in July and August towards $0.60 as the news flow slowed to a trickle. Traders will be watching for signs to see if today’s headlines foretell the start of a protracted rally.
Over the last 52 weeks, Cellceutix shares have traded as low as $0.30, which occurred on the second day of November. A few weeks later the stock kissed an annual high of $0.77.
Stock promoters have been rather shy about touting Cellceutix. A check of Stockreads.com shows the latest newsletter commentary appearing six months ago and no activity has been seen on Stockpromoters.com for well over a year. @SmallCapUpdates made a note this morning about the selection of a manufacturer.
The company is based in Beverly, Massachusetts, and focuses on the development and commercialization of compounds for the treatment of cancer and inflammatory diseases. The company owns the rights to the anti-cancer compound Kevetrin, Purisol in the treatment of psoriasis, and KM-391 for therapies involving autism.