Cellceutix Corp.: A Biotech With High Risk But High Reward
Investors willing to accept higher levels of risk in return for much higher reward possibilities typically have at least one biotechnology stock in their portfolio. For the past couple of years, biotechnology allocations have likely performed very well. As investors look ahead, one company has the potential to offer significant return but not without its fair share of risk. That company is Cellceutix Corp. (CTIX:PK)
Cellceutix is a development-stage biotechnology company focused on the development and commercialization of small molecule therapies for areas of unmet medical need such as infectious disease, oncology, and dermatology. The company currently has four products in its pipeline: Kevetrin, Brilacidin-OM, Prurisol, and Brilacidin.
In 2012, Cellceutix was one of the brightest stars of the biotechnology industry, having seen its share price rise approximately 300 percent. Investors were expecting great things in 2013, but the big events that investors were waiting on never seemed to have much of an impact on the share price. Instead, shares appreciated by a modest 13 percent, which could be considered disappointing considering the biotechnology industry as a whole performed much better.
Despite the volatile share price that investors endured for much of 2013, the potential that Cellceutix has cannot be disputed. The company’s flagship product candidate is Kevetrin, a small molecule compound that has demonstrated potent anti-tumor efficacy against various forms of cancer like lung, breast, colon, prostate, and squamous cell carcinoma. Kevetrin has the potential to radically improve cancer treatment because of its unique mechanism of action. Kevetrin works by activating the p53 gene, also known as the “Guardian Angel Gene” because of its critical role in controlling cell mutations.