SOURCE: Cellceutix

Cellceutix

October 02, 2015 06:19 ET

Cellceutix Retains Ashcroft Law Firm, Seeks Withdrawal of Complaint

BOSTON, MA--(Marketwired - October 02, 2015) - Cellceutix Corporation (OTC: CTIX), issues the following statement in connection with the recent filing of a frivolous and baseless lawsuit in New York:

Cellceutix, headquartered in Beverly, Massachusetts, has retained the Ashcroft Law Firm -- led by Michael J. Sullivan, former United States Attorney for the District of Massachusetts -- to investigate, address and defend frivolous claims filed by the Rosen Law Firm in the U.S. District Court for the Southern District of New York (Case 1:15-cv-07194-KPF).

Cellceutix is a clinical stage biopharmaceutical company developing innovative therapies in oncology, dermatology and antimicrobial applications. Cellceutix believes it has a world-class portfolio of compounds and is now engaged in advancing its compounds and seeking strategic partnerships.

In the event Cellceutix is formally served with the complaint, it will deny the allegations in the lawsuit and will vigorously defend itself and its shareholders from this contemptible action. The allegations -- apparently gleaned from an article of highly dubious origin -- are fictional, and, in the company's view, represents a cynical attempt to improperly manipulate the value of its stock offerings and/or unfairly attack a rapidly emerging company.

Cellceutix is proud of its performance and successes within the industry and is deeply disappointed by the baseless claims of the Rosen Law Firm and the plaintiffs in this action.

"Mako Research (the apparent author of a Seeking Alpha article), the Rosen Law Firm and the plaintiffs, have launched a wholly unjustified attack on Cellceutix and its managing members," said Michael J. Sullivan of the Ashcroft Law Firm. "Based on our initial review, this litigation is entirely without merit and it is apparent that the Rosen Law Firm's complaint relied almost exclusively on a scandalous and meritless article published on Seeking Alpha, and should be immediately, voluntarily withdrawn in order to mitigate future harm to this Company."

Should it become necessary, Cellceutix plans to argue that Rosen Law Firm filed its improper complaint without first investigating the factual basis of the allegations as required by the law and professional standards. Absent a withdrawal of this Complaint, Cellceutix intends to seek both a dismissal of this action and sanctions against Rosen Law Firm for initiating this frivolous lawsuit and for failing to conduct any reasonable due diligence which would have shown that the allegations are false.

Currently, Cellceutix's anti-cancer drug Kevetrin is in a Phase 1 clinical trial at Harvard Cancer Centers' Dana Farber Cancer Institute and Beth Israel Deaconess Medical Center. In the laboratory Kevetrin has shown to induce activation of p53, often referred to as the "Guardian Angel Gene" due to its crucial role in controlling cell mutations. In the Phase 1 trial, p53 activity is evidenced through increased expression of p21, a downstream biomarker of p53.

Cellceutix is in a Phase 2 clinical trial with its novel compound Brilacidin-OM for the prevention of Oral Mucositis in patients with head and neck cancer. Brilacidin-OM, a defensin mimetic compound, has shown in an animal model to reduce the occurrence of severe ulcerative oral mucositis by more than 94% compared to placebo. Cellceutix's anti-psoriasis drug Prurisol is in a Phase 2 trial. Prurisol is a small molecule that acts through immune modulation and PRINS reduction.

Cellceutix's lead antibiotic, Brilacidin, has completed a Phase 2b trial for Acute Bacterial Skin and Skin Structure Infections, or ABSSSI. Top-line data have shown a single dose of Brilacidin to deliver comparable clinical outcomes to the FDA-approved seven-day dosing regimen of daptomycin. Brilacidin has the potential to be a single-dose therapy for certain multi-drug resistant bacteria (Superbugs).

Cellceutix has formed research collaborations with world-renowned research institutions in the United States and Europe, including MD Anderson Cancer Center, Beth Israel Deaconess Medical Center, Fox Chase Chemical Diversity Center, and the University of Bologna.

About The Ashcroft Law Firm:
The Ashcroft Law Firm was founded by former U.S. Attorney General, Governor and Senator John Ashcroft, and has offices in Boston, MA, Washington, DC, St. Louis, MO, and Austin, TX. See http://ashcroftlawfirm.com/ for more information.

Alerts:
Sign-up for Cellceutix email alerts is available at http://cellceutix.com/email-alerts/ - sthash.CRfqSmmY.dpbs

Cellceutix clinical trials on Clinicaltrials.gov:
https://clinicaltrials.gov/ct2/results?term=cellceutix&Search=Search

About Cellceutix:

Headquartered in Beverly, Massachusetts, Cellceutix is a publicly traded company under the symbol "CTIX". More information is available on the Cellceutix web site at www.cellceutix.com.

Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that could cause Cellceutix's actual results and experience to differ materially from anticipated results and expectations expressed in these forward looking statements. Cellceutix has in some cases identified forward-looking statements by using words such as "anticipates," "believes," "hopes," "estimates," "looks," "expects," "plans," "intends," "goal," "potential," "may," "suggest," and similar expressions. Among other factors that could cause actual results to differ materially from those expressed in forward-looking statements are Cellceutix's need for, and the availability of, substantial capital in the future to fund its operations and research and development; including the amount and timing of the sale of shares of common stock to Aspire Capital; the fact that Cellceutix's compounds may not successfully complete pre-clinical or clinical testing, or be granted regulatory approval to be sold and marketed in the United States or elsewhere. A more complete description of these risk factors is included in Cellceutix's filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. Cellceutix undertakes no obligation to release publicly the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation.

Contact Information

  • INVESTOR AND MEDIA CONTACT:
    Cellceutix Corporation
    Leo Ehrlich
    Email contact