Cellceutix, PolyMedix deal

Cellceutix acquired PolyMedix's assets, including the defunct biotech's pipeline of nine compounds as well as substantial equipment assets at PolyMedix's former headquarters and laboratory. Cellceutix acquired the assets for $5 million comprised of $2.1 million in cash and 1.4 million Cellceutix shares valued at $2.09 per share.

PolyMedix's antibiotic Brilacidin completed a Phase II proof-of-concept trial to treat acute bacterial skin and skin structure infections (ABSSSI) caused by Staphylococcus aureus and Streptococcus pyogenes. Cellceutix said it intends to "quickly" advance the synthetic defensin mimetic bactericidal antibiotic into a Phase IIb trial. Cellceutix also said that the acquisition has shifted its development strategy, and the company has decided to forego a planned proof-of-concept trial of psoriasis drug Prurisol. Cellceutix has begun preparing paperwork for FDA to start a larger scale Phase II/III trial of the small molecule immune stimulator. Last year, FDA informed the company that developing Prurisol under section 505(b)(2) of the Food, Drug and Cosmetic Act would be an acceptable approach. Section 505(b)(2) allows sponsors to reference data on safety and efficacy from the scientific literature or from previously approved products (see BioCentury, June 28, 2012). ...