Cellceutix CEO Discusses Corporate Developments in 2012 and

Cellceutix CEO Discusses Corporate Developments in 2012 and Plans for
2013 
BEVERLY, MA -- (Marketwire) -- 12/31/12 --  Cellceutix Corporation
(OTCBB: CTIX) (the "Company"), a clinical stage biopharmaceutical
company focused on discovering small molecule drugs to treat unmet
medical conditions, including drug-resistant cancers and autoimmune
diseases, today provides a letter from the CEO regarding developments
of the Company throughout 2012 and expectations for 2013. 
My fellow Cellceutix shareholders, 
Looking back at the past 12 months, I could not be more pleased with
the progression of our Company or more excited about 2013. It has
always been our contention that Kevetrin(TM), our flagship
anti-cancer drug, holds a great deal of promise as a potential
therapeutic for a wide array of cancers and this past year has
provided evidence that many leading institutions also see the
potential. I'd like to take a moment and look at the progression of
Kevetrin in 2012 and where it stands moving into 2013. 
Company-sponsored clinical trials at Harvard University's Dana-Farber
Cancer Center and partner Beth Israel Deaconess Medical Center began
in November testing Kevetrin for safety against solid tumors. At this
time, first cohort patients are about to begin their third cycle of
dosing and the second cohort -- in which dosing levels were doubled
-- are in their first cycle of dosing. The information that we have
received at this early stage of the trial so far has been very
encouraging with no data being delivered outside of the parameters of
the protocol. We expect some information on pharmacokinetics from the
early cohorts in the near term. 
European trials that are being sponsored by and hosted at a leading
European University (the "University") testing Kevetrin against Acute
Myelogenous Leukemia (AML) are scheduled to begin in the first half
of 2013. We have been advised that the study, a phase 1b trial, will
be titled "A Multi-Center, Open-Labe, Phase 1B Study of Escalating
Doses of Kevetrin (Thioureidobutyronitrile) Administered
Intravenously, with Cytarabine Adminstered A) Subcutaneously, or B)
Intravenously, in Patients with Acute Myelogenous Leukemia (AML)." 
The protocol for the clinical trials is completed and undergoing a
review process as well as other re
gulatory preparations progressing
smoothly. The University has conducted pre-clinical research that
they shared with us but asked that we not disclose the data as they
"plan to publish it at a later day." A very brief summary of the data
showed Kevetrin causing apoptosis (programmed cell death) in
cancerous cells in addition to sensitizing and optimizing the cells
to maximize the effectiveness of drugs used in combination with
Kevetrin. We will be releasing details about the University very
shortly. 
The University has indicated they are interested in a second study of
Kevetrin in combination with a compound of a major European
pharmaceutical company. We will update shareholders as this moves
forward in 2013.  
Preclinical tests are being performed at Beth Israel Deaconess
Medical Center testing Kevetrin in combination with Pfizer, Inc.'s
multikinase inhibitor drugs as potential new therapies for renal
cancer and melanoma. We have seen the data and it is very exciting to
us, but, again, confidentiality agreements prevent us from providing
any details at this time. Moreover, data of this nature is generally
not discussed so that the institutions may present their findings at
industry conferences when they deem appropriate. 
We disclosed in an 8-K filing with the Security and Exchange
Commission on December 27 that the Company has recently been
approached by one of the world's most prominent cancer centers (the
"Cancer Center"), located in the Southwest United States. The
organization is interested in conducting and sponsoring studies on
Kevetrin at their facilities. As stated in the regulatory filing, no
assurances are made or implied that an agreement will be executed,
but we are optimistic that the relationship will move forward early
in 2013. We have now signed a Non-Disclosure Agreement with the
Cancer Center and are quickly moving forward with a Material Transfer
Agreement. Further details will be provided as permitted, but we are
free to say that the Cancer Center is interested in the possibility
of Kevetrin as a potential therapy for myeloma. Just like the other
institutions, they will perform their own preclinical testing of
Kevetrin. 
Regarding Prurisol(TM), our leading anti-psoriasis drug candidate, a
Company-sponsored Phase II/III Proof of Concept trial is on target to
begin late first quarter/early second quarter 2013. This will be a
relatively short trial with only 30 days of treatment and 30 days of
follow-up to evaluate the efficacy and safety of Prurisol. Dr.
Reddy's Laboratories Ltd. has condensed the manufacturing process,
saving us time and money. Manufacturing of cGMP Prurisol is expected
to begin in about a month's time. Given the outstanding data from our
laboratory studies and the guidance from the Food and Drug
Administration that a 505(b)(2) pathway is acceptable, we have high
expectations for these trials to support a larger scale, late stage
clinical trial. I believe updates on these trials will be quite
frequent. 
Although many of the expected studies on Kevetrin will be sponsored
by outside organizations, financing is still critical to advancing
those drugs further into human trials. To achieve this, we are
extremely pleased to have received institutional support through a
$10 million common stock purchase agreement with Aspire Capital Fund
LLC in December. Aspire has committed to purchase up to $10 million
of our Company's common stock over the next three years at prices
based on the market price at the time of each sale. 
2012 has put us at the forefront of some of the leading cancer
research centers in the world and I could not be more proud. Kevetrin
is an extremely unique drug, actually classified as a new class of
chemistry in medicine, and its ability to re-activate p53 could
simply be unprecedented if it continues to show low toxicity. There
is no comparison of Kevetrin to any other compound. I think that the
interest that has been shown by organizations approaching us wishing
to conduct and sponsor research speaks for itself as to what some of
the brightest minds in oncology see in the data. It has been well
publicized what a major impact a p53 drug can have on cancer research
and we are excited to be at the forefront of pharmaceutical companies
in that space. 
We are also very eager to evaluate Prurisol in clinical trials in a
matter of months. While not as high-profile as a new cancer drug,
psoriasis represents a multi-billion dollar opportunity and an area
of great unmet medical need. Soon clinical research on Prurisol will
begin which we anticipate will validate our laboratories studies and
allow us to have a very promising late-stage clinical trial in the
mid-term. 
Of course, a big key to this is the new association with Aspire
Capital Fund LLC. Their commitment to provide us funding at such
favorable terms will prove invaluable to developing our pipeline. 
I have stated in the past, "the best is yet to come" and I believe
that 2012 was full of our Company meeting milestones that has us
firmly moving forward and gaining recognition as an innovative
biotechnology company. We have distinguished ourselves through
Kevetrin as one of only a handful of companies that is developing a
p53 drug, but that is not all that we have to offer. Pruri
sol is
jumping straight into mid-stage trials and we have six other
compounds in our pipeline that hold great potential as well. 2012 has
seen us transition into a clinical stage company and provided us with
the financing to continue to move ahead, but I believe that 2013 will
be a bigger year for us with clinical data coming from multiple
trials and that the best is still yet to come. 
We appreciate the support that we have received from our loyal
shareholders throughout the year and pledge to continue to
immediately provide as much information as possible through public
disclosures as they happen in the coming year. 
Thank you. 
Leo Ehrlich
 Chief Executive Officer, Cellceutix Corporation 
About Cellceutix
 Headquartered in Beverly, Massachusetts, Cellceutix
is a publicly traded company under the symbol "CTIX". It is an
emerging bio-pharmaceutical company focused on the development of its
pipeline of compounds targeting areas of unmet medical need. Our
flagship compound, Kevetrin(TM), is an anti-cancer drug which has
demonstrated the ability in pre-clinical studies to regulate the p53
pathway and attack cancers which have proven resistant to today's
cancer therapies (drug-resistant cancers). Cellceutix also owns the
rights to seven other drug compounds, including KM-133, which is in
development for psoriasis, and KM-391 for the treatment of the core
symptoms of autism. More information is available on the Cellceutix
web site at www.cellceutix.com. 
Safe Harbor Forward-Looking Statements 
To the extent that statements in this press release are not strictly
historical, including statements as to revenue projections, business
strategy, outlook, objectives, future milestones, plans, intentions,
goals, future financial conditions, future collaboration agreements,
the success of the Company's development, events conditioned on
stockholder or other approval, or otherwise as to future events, such
statements are forward-looking, and are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. The forward-looking statements contained in this release are
subject to certain risks and uncertainties that could cause actual
results to differ materially from the statements made. Factors that
may impact Cellceutix's success are more fully disclosed in
Cellceutix's most recent public filings with the U.S. Securities and
Exchange Commission.  
INVESTOR AND MEDIA CONTACT:
Cellceutix Corp.
Leo Ehrlich
(978) 236-8717
info@cellceutix.com