Citius Pharma secures $3 million in direct offering

CRANFORD, N.J. - Citius Pharmaceuticals Inc . (NASDAQ: NASDAQ:CTXR), a biopharmaceutical company with a market capitalization of $97.31 million, announced today the sale of shares and warrants in a registered direct offering expected to yield approximately $3 million in gross proceeds. According to InvestingPro data, the company's stock has shown significant volatility, trading between $0.85 and $49.00 over the past 52 weeks. The transaction involves the sale of 743,496 shares of common stock, each bundled with a warrant to purchase an additional share at $4.035, with the warrants exercisable immediately at $3.91 and valid for five years from the initial exercise date.

H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering, which is set to close today, subject to standard closing conditions.

The funds raised are earmarked for general corporate purposes, including the development of the company's product candidates and other capital needs. This capital raise comes at a crucial time, as InvestingPro analysis shows the company's current ratio of 0.34 indicates short-term obligations exceed liquid assets, though it maintains a moderate debt-to-equity ratio of 0.08. Citius Pharma's product pipeline includes LYMPHIR, an FDA-approved immunotherapy for cutaneous T-cell lymphoma, and Mino-Lok, an antibiotic lock solution that has completed a successful Phase 3 trial. The company is also developing CITI-002 (Halo-Lido), a topical treatment for hemorrhoids, which has completed a Phase 2b trial.

The securities are being offered under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on February 23, 2024, and declared effective on March 1, 2024. Relevant documents, including the prospectus supplement and accompanying prospectus, will be available on the SEC's website.

This press release does not constitute an offer to sell or a solicitation to buy the securities described and specifies that the sale of these securities will not be conducted in any jurisdiction where such an offer, solicitation, or sale would be unlawful without proper registration or qualification under the securities laws of any such state or jurisdiction. Investors seeking deeper insights into CTXR's financial health and growth prospects can access additional ProTips and comprehensive analysis through InvestingPro, which currently shows an analyst target price of $3.00, suggesting potential upside from current levels.

The information in this article is based on a press release statement from Citius Pharmaceuticals Inc.

In other recent news, Citius Pharmaceuticals and its subsidiary Citius Oncology are preparing for the commercial launch of LYMPHIR™, an innovative immunotherapy for adults with relapsed or refractory cutaneous T-cell lymphoma (CTCL). The company is aiming to make LYMPHIR available to patients in the first half of 2025, following its FDA approval in August 2024. As part of their launch strategy, Citius has secured commercial supply agreements, initiated targeted education programs for healthcare providers, and is developing a patient services center.

The company is also working closely with payers and healthcare providers to secure reimbursement pathways and has submitted an application for a unique J-code under the HCPCS. Citius Oncology's management is exploring growth opportunities, including licensing partnerships in key international markets and expanded indications for LYMPHIR.

In addition to LYMPHIR, Citius Pharmaceuticals' pipeline includes late-stage products such as Mino-Lok®, for catheter-related bloodstream infections, and CITI-002 (Halo-Lido), for hemorrhoid relief. Both products have completed clinical trials in 2023, with Mino-Lok meeting both primary and secondary endpoints. These recent developments highlight Citius' ongoing commitment to advancing treatment options in the healthcare sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.