It took Cellceutix Corp (PINK:CTIX) more than five weeks to register a two-digit increase in value. Yesterday, CTIX gained 10% without any news or promotions whatsoever. Thus, it closed the session at its May 17 level of $0.88, making a huge step toward dollarland.
While the price surge was fairly moderate, it was accompanied by huge volume movement – 443 thousand shares of CTIX stock changed hands yesterday as compared to Thursday’s 19 thousand and the daily average trading volume of 41K.
Describing itself as a biopharmaceutical company engaged in the discovery of small molecule drugs, CTIX is currently developing its Kevetrin (TM), a p53 breakthrough anti-cancer compound. The latest follow-up on the project came up at the very beginning of the week. According to the update, CTIX had now launched a new study aimed at determining the impact of Kevetrin (TM) on animals bearing human pancreatic cancers. While there is no guarantee that any successful results in treating animals will reoccur in humans, it is still an essential step before clinical trials commence.
The company has made every effort to keep its financial policy as transparent as possible. In addition to the corporate update mentioned above, CTIX published a comprehensive 10-Q report covering Q1 of 2011. As of Mar. 31, 2011 the company’s unaudited balance sheet disclosed:
- $90K in cash;
- $148K in current assets vs $6.5 million in current liabilities;
- zero revenues and a quarterly net loss of $2.3 million as compared to $800 thousand for Q1 of 2010.
If CTIX managers want to get the company in the black, they will have to do their best to help Kevetrin (TM) make a giant breakthrough. However, as good as the idea sounds, it is still far from becoming a reality. Moreover, the company will undoubtedly need serious financing in the months to come, which raises concerns about possible dilution.
