Cellceutix Acquires PolyMedix Assets From Bankruptcy Court, Gains Ownership of
Two Clinical Stage Drugs, Multiple Compounds, and
BEVERLY, MA -- (Marketwired) -- 09/09/13 -- 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, is pleased to announce that it has acquired substantially
all of the assets of the company formerly known as PolyMedix, Inc.,
and previously traded as PYMX, a clinical stage biotechnology company
which developed small-molecule drugs for the treatment of infectious
diseases and innate immunity disorders. The acquisition includes the
PolyMedix pipeline of nine compounds as well as the substantial
equipment assets at PolyMedix's 25,000-square-foot headquarters and
The acquisition includes PolyMedix's flagship drug candidate
Brilacidin, a first-in-class defensin-mimetic antibiotic that has
completed a Phase 2a clinical trial demonstrating safety,
tolerability and efficacy in patients with acute bacterial skin and
skin structure infections ("ABSSSI") caused by Staphylococcus aureus.
In the clinical trial, Brilacidin hit its primary endpoints with high
and low doses outperforming Cubist Pharmaceuticals' Cubicin in the
control arm of the study.
"This is a transformational development for our Company and
shareholders; adding the assets of PolyMedix for a tiny fraction of
what we believe the company is truly worth," said Leo Ehrlich, Chief
Executive Officer at Cellceutix. "We are very excited about instantly
having a strong antibiotic franchise to complement our already robust
pipeline that now contains 18 compounds. We intend to quickly advance
Brilacidin into a Phase 2b clinical trial, a drug that we believe
could one day compete with drugs like Pfizer's Zyvox, which generated
$1.35 billion in sales in 2012. The acquisition, which includes
laboratory equipment and other furnishings that we are confident cost
in excess of $1 million, makes us an even more formidable company. As
such, we have shifted our development strategy with our
anti-psoriasis drug, Prurisol, to forego the planned Proof-of-Concept
trial overseas and have already begun preparing the regulatory
paperwork for the Food and Drug Administration to initiate a
larger-scale, Phase 2/3 multi-center trial. The adjustment will save
us hundreds of thousands of dollars and months of time that will now
be better served to position us to potentially have up to five
clinical trials ongoing in 2014. This acquisition dovetails very
nicely in our goals to continue to build shareholder value and uplist
to a senior exchange in the near future."
PolyMedix filed for Chapter 7 bankruptcy protection on April 1, 2013.
Following a due diligence process, Cellceutix submitted a "stalking
horse" bid for the PolyMedix assets in August. On Wednesday,
September 4, the Bankruptcy Court for the District of Delaware
approved the asset purchase agreement. In the transaction, Cellceutix
assumes none of the debt associated with PolyMedix. The purchase
price was $2.1 million in cash and 1.4 million shares of CTIX stock.
Less than two years ago, PolyMedix had 28 employees, a market
capitalization of $227.4 million and was rated as "outperform" by a
well-known investment banking firm.
Cellceutix will be presenting at 2:00 PM EDT today at the 15th Annual
Rodman & Renshaw Global Investment Conference, hosted at the
Millennium Broadway Hotel in New York City. Amongst other things,
updates will include discussion on Kevetrin, the Company's
anti-cancer drug that is presently in the fifth cohort of a clinical
trial at Dana-Farber Cancer Institute.
The presentation will be webcast live. To access the webcast, please
visit www.rodm.com. The webcast will be archived for 90 days on the
Rodman & Renshaw website at http://wsw.com/webcast/rrshq23/CTIX and
will be made available on the Cellceutix website as well.
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. 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
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