Innovation Pharmaceuticals Inc (OTCMKTS:IPIX), the biopharmaceutical company, executed a ticker change from Cellceutix Corp (OTCMKTS:CTIX). The change went into effect on June 9, 2017. As expected, the event did not have any market reaction, because the company’s assets and R&D activities remain the same. In this piece, we use the opportunity to review the stock catalysts, and the most recent developments of the company. First of all have a look at the long term price action.
CTIX has three drug candidates; Prurisol, Kevetrin and Brilacidin. The first drug focuses on the treatment of Psoriasis, Kevetrin is intended to combat Ovarian Carcinomas, which is a type of cancer, whereas Brilacidin is being tested for the treatment of Inflammatory Bowel Disease, and Oral Mucositis. This image will help readers understand the illnesses targeted.
Honestly, this is quite a wide spectrum of diseases, thus we will try to focus only on the drugs approved or almost approved by the FDA. The most important developments are the following ones:
Name change and Catalysts
On June 9, 2017, the company changed its name to Innovation Pharmaceuticals, Inc., and started to trade with the ticker “IPIX”. The market did not respond to the change, as day traders understood that the company and catalysts remain the same. Have a look at what happened in the last month.
The share price was moved by other announcements; mainly new data released in May 30, and most importantly the information put out on May 18, 2017:
On May 30, 2017, the company disclosed new data, supporting the use of a new molecule compound of Kevetrin, for the treatment of Acute Myeloid Leukemia (AML). The company will present the findings in a poster at the 2017 European Hematology Association (EHA) Annual Meeting to be held on June 22-25 in Madrid, Spain. Readers can find the information that will be exposed here.
The most relevant information was published some weeks ago. On May 18, 2017, the company noted the completion of the third and final cohort of its Phase 2 open-label trial for the treatment of Inflammatory Bowel Disease (IBD). The drug Brilacidin was said to show “strong signs of efficacy while being well-tolerated, reinforcing its potential to become a novel, non-corticosteroid, non-biologic anti-inflammatory drug candidate“. The final trial will be limited to five patients, and the data will be presented on schedule for presentation at the Drug Discovery & Therapy World Congress in July. This is the catalyst that we were looking for. President and Chief Medical Officer, Arthur P. Bertolino, explained it in the following way:
“We expect that a complete body of data and evidence, including importantly endoscopic evaluation, will demonstrate just how safe and effective Brilacidin, as an emerging treatment, might one day become for those suffering from a wide range of debilitating inflammatory bowel conditions” Source
Social media exploded as day traders expected a large move to happen as a result of the Phase 2 trial numbers release. Email subscribers should check the Yahoo Finance Forum and the iHub forum. Even short sellers were stated to fear the news and decided to put out a bad article about IPIX (Seeking Alpha author Mako Reseach).
Innovation Pharmaceuticals, Inc. received a new name and ticker, but nobody made a move, as the company remains the same. Furthermore, the announcement of a poster in the 2017 European Hematology Association (EHA) Annual Meeting to be held on June 22-25 in Madrid, Spain, was not relevant either, as the company did not have any relevant discovery to merit a publication or a presentation. Conversely, the press release put out on May 18, 2017 did make the share price move. In July, very important results will be put out about the company’s drug ‘Brilacidin’. Thus, email subscribers need to remain alert. Try to read our coverage on this stock in order to be prepared and to understand the next press release rapidly.
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Disclosure: We have no position in IPIX and have not been compensated for this article.