Sign Up NowThis Month's Tiny Gems - December 2016

Cellceutix Corp. (CTIX)
Fortress Biotech, Inc. (NASDAQ: FBIO)
Moxian, Inc. (NASDAQ: MOXC)
Net Element (NASDAQ: NETE)
The Trade Desk, Inc. (NASDAQ: TTD)




Cellceutix Corp. (CTIX)


Cellceutix (CTIX) CEO Leo Ehrlich in September issued a fiscal year-end business statement recapping the company's ability to usher its three unique compounds through various stages of clinical trials to successfully meet primary endpoints and drop anchors in several key markets. Advancements of its current pipeline – spanning dermatology, cancer, infectious disease and gastrointestinal indications – also set the company on course to achieve another season of remarkable progress.


Cellceutix's lead cancer drug candidate is Kevetrin™, an Orphan Drug anti-cancer agent entering phase 2a clinical trials for the treatment of ovarian cancer. Upon commercialization, Kevetrin would be the world's first p53-modulating drug. The company is also conducting research to develop an oral formulation of Kevetrin, taking advantage of the drug's short half-life of roughly two hours.


"If we can develop an oral Kevetrin dosing possibilities are numerous. Perhaps two times or three times a day and seven days a week. Now you know why we are excited. A drug activating p53 and dosed orally, we think would have blockbuster potential. More research needs to be done to validate the clinical effectiveness of Kevetrin as well as developing an oral formulation. But I'd hope investors now understand why we get excited about the possibility of developing both the world's first safe p53 modulating drug and an oral formulation," Ehrlich stated in the company's fiscal Q1 2017 earnings call in September.


Another propellant of progress is an anti-psoriasis drug candidate the company once called a "dark horse" or "long shot." Advancing through two successful clinical trials, however, the potential of Cellceutix's Prurisol™, now in phase 2b trials, is starting to take shape.


"We believe that the potential safety profile of Prurisol may make this an attractive alternative to Celgene's (NYSE: CELG) OTEZLA, which is on its way to achieving $1 billion in sales within just three years of its launch," Arthur P. Bertolino, MD, PhD, MBA, president and chief medical officer at Cellceutix, stated in a recent news release.


In the previously mentioned September business update, Ehlrich also noted Allergan's (NYSE: AGN) $639 million acquisition of Vitae Pharmaceuticals' (NASDAQ: VTAE) two clinical drug candidates, one of which is an oral therapy for psoriasis.


"I share this with you because it exemplifies the premium that the industry is placing on new, oral psoriasis drugs, even those in mid-stage development. I'm not in the business of analysis, but it seems to me that Allergan values VTP-43742 at more than our total market capitalization. As such, we see a tremendous market opportunity with Prurisol and greatly look forward to initiating our Phase 2b trial in patients with moderate to severe psoriasis with emphasis on the Psoriasis Area and Severity Index (PASI). We've just advanced substantial start-up payments to vendors towards the trial, an action that we feel will continue to grow shareholder value.


"I wish to point out that Dr. Bertolino is now introducing Prurisol to large pharmas, most of which are embracing it for the first time. We believe that the path to a large financial deal is generation of comparably encouraging data in Phase 2b as recently seen in our completed Phase 2a trial," he said.


Interim analysis of top-line phase 2b results of Cellceutix's study is expected in the second quarter of 2017.


The third candidate in the pipeline is Brilacidin, which has shown antibacterial, anti-biofilm and anti-inflammatory properties in various pre-clinical studies. Currently underway is a phase 2 trial evaluating the oral rinse Brilacidin-OM for the treatment of chemoradiation-induced oral muscositis (OM), an inflammatory condition, in head and neck cancer patients.


"Having data, demonstrating Brilacidin can fight inflammation and doesn't accumulate in the blood is a major benefit for what can be a painful and expensive condition that doesn't have any FDA approved treatments. We greatly look forward to additional data from this trial expected in the first half of 2017," said Ehrlich.


Cellceutix's pursuit of FDA approval for the products in its pipeline is piquing the interest of larger peers, according to Ehrlich, which in recent months has resulted in more "high-level" business development meetings than at any other time in the company's history.


"Over the years we have gone from a company with only a single lead drug candidate in an early clinical study to a company that has effectively has three lead drug candidates at mid-state trials targeting multiple indications with new possibilities cropping up regularly underscored by our robust pipeline. We're having success at targeting multi-billion dollar opportunities with new drugs that can provide relief for millions of people worldwide suffering from hard-to-treat maladies. I believe that is more than ample reason to be excited about all that we have accomplished our future and the litany of catalyst expected in 2017," said Ehrlich.




Fortress Biotech, Inc. (NASDAQ: FBIO)


Fortress Biotech, Inc. (NASDAQ: FBIO) is not putting all its eggs in one basket. This is a biopharmaceutical company with multiple revenue streams and a profuse product portfolio so diversified that Harry Markowitz, the father of modern portfolio theory, might tip his hat to the way the company has sought to mitigate developmental risks. Fortress' diverse product pipeline also gives it multiple shots at hitting its financial goals, increased by the symbiotic relationship between development areas. The research platforms are structured so that success in one area is likely to add impetus to another.


Fortress is parent to a group of companies dedicated to acquiring, developing and commercializing novel pharmaceutical and biotechnology products. The company plans to develop and commercialize products that it acquires both directly and indirectly by establishing subsidiary companies, also known as Fortress Companies. The company will then leverage its biopharmaceutical business expertise and drug development capabilities to help the Fortress Companies achieve their goals. Additionally, Fortress will provide funding and management services to each of the Fortress Companies, and, from time to time, the company and the Fortress Companies will seek licensing, partnerships, joint ventures, and/or public and private financing to accelerate and provide additional funding to support their research and development programs.


The current pipeline ranges over products in various stages of development. Still in the pre-clinical stage are programs for oncolytic virus (a virus to destroy cancer cells); the CK-103 BET Inhibitor, also directed at cancer; and at least five others.


At the phase I/II stage, Fortress and its subsidiaries have at least a dozen programs underway. These include N-acetyl-D-mannosamine (ManNAc) Triplex for kidney disease and GNE myopathy, CNDO-109 and CD123 CAR for acute myeloid leukemia (AML), and CEVA101 for adult and pediatric traumatic brain injury (TBI).


This year, under subsidiary Journey Medical Corporation (JMC), the company took four products, Targatox, Dermasorb, Ceracade and Luxamend, to market. In July 2016, JMC received FDA approval to manufacture Targadox™, its product for the treatment of severe acne. Sales commenced in October 2016. During the second quarter of 2016, JMC began sales of "Journey" branded products including Luxamend®, its prescription wound cream, and Ceracade™, its emollient for the treatment of various types of dermatitis. At the end of the third quarter (September 30, 2016), JMC product sales had reached $1.8 million, a sign of very good things to come.


Several analysts have taken notice. The Cerbat Gem reports that 'Fortress Biotech Inc. stock had its "buy" rating reaffirmed by stock analysts at FBR & Co in a note issued to investors on November 18.' On October 3, Roth Capital initiated coverage of Fortress, setting a 'Buy' rating and a price target of $9.00. In addition, Zacks Investment Research raised Fortress Biotech from a 'Hold' rating to a 'Buy' rating and set a $3.00 price objective for the company in a research report issued on September 20th. Fortress stock currently trades at around $2.30 on the NASDAQ under the symbol FBIO.




Moxian, Inc. (NASDAQ: MOXC)


Moxian, Inc. (NASDAQ: MOXC) engages in the business of providing social marketing and promotion platforms designed to help merchants accelerate and advertise their business growth through social media. These products and services enable merchants to run targeted advertising campaigns and promotions, and aim to enhance the interaction between users and merchant clients by using consumer behavior data compiled from the Moxian database of user activities. The company has two primary core products: Moxian+ User App and Moxian+ Business App.


Developed in Shenzhen, China, Moxian integrates social media, entertainment and business intelligence. The Multi-Channel Social Commerce Platform, which includes a variety of tools such as Moxian's proprietary Social Customer Relationship Management (SCRM) system, generates knowledgeable data for merchants. This way, consumers and businesses are able to connect and interact with one another to achieve the concept of "online lifestyle, offline fun."


Moxian+ User App serves as an App driven for consumer users to use the platform, consisting of our proprietary virtual currency (MO-Coin and MO-Points), social networking, redemption centre and game centre. Users can earn MO-Coins by playing games, and then use those coins to redeem prizes sponsored by Moxian and client merchants. This model not only drives registered consumers to Moxian and merchant, but also provides merchants the opportunity to advertise, run marketing campaigns, and learn about their customers through the Platform.


Moxian+ Business App is an independent App with built in Social Customer Relationship Management tool built for merchants. Merchants are able to set up a store on the Moxian platform through this business App, push promotions via a variety of methods offered on the platform and look at generated report customized to their own shop.


Moxian's management team has more than 100 years of combined experience in a variety of pertinent endeavors, including management of private and public enterprise, multi-national organizations, quality, engineering and procurement, finance, marketing, communication and more. Together, Moxian's management team is effecting the company's aim to create and lead a personalized social network platform that best fits users and businesses.




Net Element (NASDAQ: NETE)


Net Element (NASDAQ: NETE) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprises in the United States and select emerging markets. Leveraging a network of subsidiaries operating in the mobile payments and value-added transactional services space – including Unified Payments, Aptito and PayOnline – Net Element is committed to promoting consistent and strong growth, as illustrated by its position as one of the South Florida Business Journal's 'Top 25 Fastest-Growing Technology Companies'. In the first seven months of 2016 alone, the company realized a 77 percent year-over-year increase in transactional processing volume when discounting the effects of foreign currency exchange.


A major contributor to this sustained growth has been Net Element's PayOnline subsidiary, which offers state-of-the-art payment technologies that are currently employed by more than 3,000 online enterprises across Europe and Asia. To bolster this position, the company has continued to expand its presence in Central Asia, most recently through the opening of a new office in Kazakhstan, the largest country in the region. Since its first anchor project in Kazakhstan in June 2015, PayOnline has entered agreements with more than 180 online merchants in Central Asia, and the region is expected to offer an opportunity for tremendous growth in the coming years as the proliferation of electronic commerce takes hold.


The growth of PayOnline throughout Eurasia has been accompanied by both awards and industry recognition. Independent analytical agency Markswebb Rank & Report ranked PayOnline as a top five payment acceptance company in its 2016 Internet Acquiring Rank report, and a second analytical agency,, ranked PayOnline as a leading payment gateway in its 2016 Payment Systems Rating. The company's management team attributes this success to PayOnline's "innovative, customer-focused products and services."


Net Element is led by a seasoned management team offering a unique blend of leadership, vision, experience and creative energy. Oleg Firer, the company's chief executive officer, formerly served as the executive chairman of Unified Payments up until its acquisition by Net Element's TOT Group in April 2013. Under his guidance, Unified Payments achieved rapid growth, earning the top spot on Inc. Magazine's list of fastest-growing companies in 2012. As a result, Firer was recognized by Forbes as one of the 'Five Incredible Entrepreneurs' and by Business Leader Magazine as a 'Top Entrepreneur in South Florida'.




The Trade Desk, Inc. (NASDAQ: TTD)


The Trade Desk, Inc. (NASDAQ: TTD) is a technology company that allows buyers to use proprietary data to better target their advertising dollars. With The Trade Desk platform, organizations are able to use fully automated and programmatic means to buy advertising space on a range of media where specific consumers are more likely to use their products or services. Organizations are able to create, manage, and optimize digital advertising campaigns in formats such as display, video, audio, and more.


Headquartered in Ventura, California, with other offices in the U.S, Europe, and Asia, TTD offers an integrated feature set to its customers that includes omnichannel targeting, data management that gives insight into audiences, enterprise APIS, and HD reporting. The company runs through a self-service, cloud-based platform, offering services across a multitude of devices, including mobile devices, computers, and television.


Most recently, The Trade Desk, Inc. was ranked number 55 on the Deloitte's 2016 Technology Fast 500™ list of the fastest growing media, telecommunications, technology, energy, and life science companies in North America. The ranking for both private and public companies is based on the percentage of fiscal year growth between 2012 and 2015. TTD grew by over 1,800% during that period.


Earlier in November, The Trade Desk reported its financial results for the third quarter of 2016. Since becoming a public company in September, the company reported an increase of over 80% in revenue. Revenue for the third quarter came in at $53 million, compared to $28.8 million during the third quarter of 2015.


Highlights of the report included the fact that TTD's customer retention rate was over 95% for the quarter, and the company is expanding with new offices expected in Orange County, California, and Hong Kong, alongside plans to open new offices in both Europe and Asia Pacific. The company is aiming to report revenues of up to $62 million for the fourth quarter of 2016 and an adjusted EBITDA margin of 30%.


According to Cerbat Gem Market News and Analysis, The Trade Desk's report of $0.24 earnings per share for the quarter was higher than Thomson Reuters' consensus estimate by $0.03. Equities research analysts have made predictions of $0.85 EPS for the company for the current fiscal year.


Jefferies Group and Cantor Fitzgerald gave The Trade Desk a 'Buy' rating with target prices on the stock of $35 and $30, respectively. The company received a consensus 'Buy' rating with an average price target of $33.13.