The biotech sector has been in a short term downtrend over the last few weeks, however, the sentiment on the sector remains mixed. The iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) has struggled to break through $300 since the selloff at the start of this year.
The IBB got a boost recently following the announcement of several acquisitions. However, these acquisitions were made at discount to the price levels in mid-2015 when the biotech sector was in the middle of a boom. At best, these acquisitions would provide support to the sector, however, the IBB is likely to remain rangebound.
Shares of Cellceutix Corp. (OTCQB:CTIX) have edged higher in recent days, moving in the opposite direction of the overall biotech sector.
Based in Beverly, Massachusetts, Cellceutix is a clinical-stage biopharmaceutical company engaged in developing therapies with oncology, dermatology and antimicrobial applications. The company owns the rights to various drug compounds, including Kevetrin (thioureidobutyronitrile), which is its anti-cancer compound; Prurisol (KM-133), which is in development for psoriasis, and Brilacidin, which is its drug in a class of compounds known as defensin-mimetics.
Cellceutix shares have gained momentum after the company announced interim results observed for the first four patients treated with Brilacidin for Ulcerative Proctitis/Ulcerative Proctosigmoiditis (UP/UPS), a type of Inflammatory Bowel Disease (IBD).
Clinically meaningful improvements were demonstrated, as measured by physician assessments, patient reported outcomes and endoscopic evaluation of disease activity.
The ongoing Phase 2, open-label, proof-of-concept trial comprises three sequential cohorts (6 patients per cohort), with progressive dose escalation by cohort—50 mg, 100 mg, and 200 mg, respectively. Treatment with Brilacidin by daily enema administration is performed for 42 days.
Arthur P. Bertolino, Chief Medical Officer at Cellceutix, said that the results are extremely encouraging and they support early clinical validity of the unique immunomodulatory properties of Brilacidin.
Bertolino further said that the company expects the anti-inflammatory properties of Brilacidin alone will lead to multiple beneficial applications of the drug candidate beyond its already demonstrated effect in antibacterial indications.
Leo Ehrlich, CEO at Cellceutix, said that the company is delighted to see such promising responses to treatment in the first group of patients given the lowest dose of Brilacidin. Ehrlich further said that the open label design of this trial allowed us to take an early look.
CTIX shares were last trading at $1.33, up 0.38% from Monday’s closing price. Shares have pulled back since their recent highs in the spring, however, the chart is showing that a bottom may be developing in the near term.
