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Another Section Of Cellceutix Value

Jul. 28, 2014 8:31 PM ETPFE, MRK, LLY, IPIX, NEON, MON-OLD, DD, PG, ZTS
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The number one canine cancer drug in the world is Palladia. It once belonged to Pfizer Animal Health, but Pfizer (NYSE:PFE) believed that spinning it off along with it's other animal products into a separate company was of greater value to its shareholders. Pfizer formed a company name Zoetis (NYSE:ZTS) to pour it's veterinarian, animal health and livestock assets into and they have been rewarded for this to the tune of a current 15 billion dollar plus capitalization. Remember that Zoetis, highest profile animal onocology product is a cancer drug named Palladia.

Zoetis has another big contributor to revenue, the antibiotic ceftiofur. The largest product for the company (ceftiofur, an antibiotic) is almost 8% of sales. In my humble laymen's mind Ceftiofur and Brilacidin for diabetic foot ulcers might have a blend of therapeutic technology that could contribute strongly to the increasing the success of Ceftiofur.

According to Motley Fool columnist CFA Stephen B. Simpson, developing drugs in the animal space is a lot easier. "Human drugs require over 10 years and $1 billion on average, but animal health products are typically developed in less than five years for less than $10 million." I was unable to coordinate Mr Simpsons, words with another source, but he appears credible, as does the publication that he wrote for. However, one source that I did read said that multiples of tens of million of dollars, might be needed to obtain approval for animal drugs. Therefore 10 million at the top of the range would be factual for some, but a misconception for others.

I am doing nothing more than pointing out a few dots that everyone can see without me. However, I want to begin to connect them. Palladia appears to be Pfizer's Multi-kinase inhibitor therapeutic technology applied to canines. If that's the case, then we can safely speculate that Kevetrin after 5000 animal experiments, including a canine in the toxicology study, might well bring about a significant improvement in cocktail with Palladia, as it has Sunitinib. A stronger hint of this will be Kevetrin data coming from continued straddle clinicals at Beth Israel, with Pfizer's multi-kinase inhibitors. My hunch is that Kevetrin vs Palladia in a preclinical in animal comparison would be a material event. A strong possibility like the above two options, either a cocktail or clinical comparison, would have to attract the attention of the animal heath complex, which includes Bayer, Sanofi, and Eli Lilly (which have retained their animal health divisions).

In 2003, Pfizer had a drug approved named Zyvox, for diabetic foot ulcers. I have yet to call Pfizer or Zoetis, but I have a hunch that Zyvox and Ceftiofur for infected open leg wound on cattle, have a research and developmental relationship. The version of Brilacidin for diabetic foot ulcer's, may have application for livestock and perhaps other companion animals battling infections with open wounds on their legs. A pre-clinical trial comparing Ceftiofur vs or with Bilacidin for open wounds on cattle would also be a material event.

Downshifting into the animal realm, I would think that with their toxicology studies behind them, mechanisms of action established, and important human data compiled. Kevetrin for companion animals, and Brilacidin for livestock, and companion animals looks most appealing. Merck (NYSE:MRK), Sanofi (NYSE:SNY) and Lily(NYSE:LLY) together control approximately half of the animal healthcare markets. Zoetis with 4.5 billion, in 2013 revenue has a larger share than either of the three animal health divisions within the majors. Very small companies included are Neogen (NASDAQ:NEOG), Dechra (LON:DPH) and private Verbac. The breadth of this market with competition desiring to rival Zoetis means that new drugs that are highly and uniquely effective in the animal space will have a warm welcome for licensing, joint marketing, or acquisition of the animal rights.

An important bridge point here is that the University of Pennsylvania turns a substantial amount of its technology to veterinarian and companion animal concerns. They are substantial contributors to the PolyMedix definsin-mimetic portfolio. U Penn also has significant relationships with all important charitable fund raising for animal research, plus government research contracts.

Although this is probably a way off, and would be a distraction to current more important Cellceutix initiatives. I want to show that it would be quite valuable to spin off the animal rights of a couple of compounds from Cellceutix' portfolio into a new separately funded animal life science company. It could be capitalized at a value that might surprise current shareholders. The amount of data available on both Kevetrin and Brilacidin probably would make their animal rights sell for a premium, plus a royalty.

Take comfort fellow common shareholders, Cellceutix has many alternatives and over the long term, many of them will probably be used at strategic intervals and times. On the immediate, I want to demonstrate that once again, Cellceutix executives have yet another plausible means of unlocking the coiled compressed value of this extremely undervalued company.

Palladia and Ceftiofur together compile approximately 13% of Zoetis' 4.5 billion dollar annual income. This hints that Kevetrin and Brilacidin together would have their initial aim on roughly 500 million dollars of animal health care revenue. That say's little about Kevetrin applied to horses, and cats. Also, it does not consider the tremendous potential of Brilacidin's definsin-mimetic technology applied to other bacteriological issues within the animal space.

When the above potentials are added and one considers Brilacidin as an industrial biotechnological compound, once again the B$ word becomes viral and absorbs too much of our precious time for now. The names for licensing could range from Dow Chemical(NYSE:DOW), Monsanto(NYSE:MON) to Proctor and Gamble(NYSE:PG) that might have agricultural, industrial or consumer product interest in Brilacidin. I am starting to sing a Cellceutix version of its beginning to look a lot like Christmas, Harry Chanukah is going to visit me. Enough! Boo Yah!

Yes, I believe that Cellceutix, has the potential if it becomes necessary to acquire significant financing, just by selling the animal health care rights to their most prominent drugs Kevetrin, Brilacidin and perhaps other definsin-mimetic compounds.

I know that I have as much research to do, as I have done, in order to make this blog article stronger. Perhaps someone will do it before I can.

I have not written this to motivate a person who does not own Cellceutix, to buy the shares. However, this is information for the clairvoyant with deep seated eyes to look five to ten years to the future. Of course there's a tiny chance that it could be as the old song went, "Monday, Monday", dah dah dat day dat da.

For the time being, this is the last article that I have to harvest from my garden of Cellceutix ideas.

For readers willing to comment. How much do you think a separate company with animal rights to Brilacidin and Kevetrin would be capitalized at? I have an opinion. How do you think it would be structured? I will share my opinion with you in the comment section.

ER

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