aibioCitius Pharmaceuticals reports $1.1 million cash and expects to raise capital
Citius Pharmaceuticals ended its fiscal first quarter with $1,100,079 in cash, after operations used $4,725,852 and inventory absorbed $6,112,603. The release does not name a placement agent for the offerings it describes.
Key facts
- Companies
- Citius Pharmaceuticals, Inc. (NASDAQ: CTXR), Citius Oncology, Inc. (NASDAQ: CTOR)
- News type
- Listings
- Primary source
- Citius Pharmaceuticals, Inc. 8-K (2025-02-14)
Citius Pharmaceuticals, Inc. (Nasdaq: CTXR) reported its fiscal first-quarter results for the period ended December 31, 2024 in a press release filed on February 14, 2025 as an exhibit to a Form 8-K. The company said it expects to raise additional capital to support operations. Chairman and Chief Executive Leonard Mazur said that securing financing "remains a top priority."
Financing and the reverse split
Citius completed registered direct offerings of common stock and warrants in November 2024 and January 2025, and it sold shares through its at-the-market facility in January 2025. Combined gross proceeds were $6.5 million. Of that, $3 million came in the quarter and $3.5 million arrived in January 2025. The cash flow statement shows net proceeds of $2,574,051 from the registered direct offering in the quarter.
Effective November 25, 2024, the company carried out a 1-for-25 reverse stock split. On December 18, 2024, Nasdaq notified it that it had regained compliance with the $1.00 per share requirement. Shares outstanding were 7,727,243 at December 31, 2024, as adjusted for the split, against 7,247,243 at September 30, 2024. The split changed the share count and the per-share price, but it did not change the cash position.
Cash, inventory and liabilities
Cash and cash equivalents fell to $1,100,079 at December 31, 2024, from $3,251,880 at September 30, 2024. Net cash used in operating activities was $4,725,852 for the quarter, against $6,135,310 a year earlier. The statement shows a $6,112,603 change in inventory, and the balance sheet lists inventory of $14,381,369, up from $8,268,766. The release does not discuss the inventory build.
Total liabilities were $51,783,998 at quarter end. They include a license payable of $28,400,000, accounts payable of $7,364,120 and accrued expenses of $6,242,178. The accumulated deficit reached $211,138,464, from $201,370,218.
Costs and the net loss
Research and development expense was $2,127,038, down from $2,621,910. General and administrative expense rose to $5,387,752 from $3,660,728, which the release attributes to pre-launch sales and marketing for LYMPHIR. Stock-based compensation was $2,524,824, against $3,058,185. The net loss was $10,281,246, or ($1.30) per share, compared with a net loss of $9,231,185, or ($1.45) per share, a year earlier. The company says the decline in research spending came from completing the Halo-Lido Phase 2 and Mino-Lok Phase 3 trials, partly offset by LYMPHIR-related costs, and it expects research spending to keep falling in fiscal 2025.
Programs and the parent's subsidiary
The FDA approved LYMPHIR in August 2024 for cutaneous T-cell lymphoma. The release says the company is preparing to launch it in the first half of 2025, and it cites a permanent J-code, J9161, with an expected effective date of April 1, 2025. The release also points to what it calls promising preliminary results from an ongoing investigator-initiated Phase I trial of LYMPHIR with the checkpoint inhibitor pembrolizumab. Those results are preliminary and come from an investigator-initiated study, and the release gives no response figures.
Mino-Lok, the antibiotic lock solution, met the primary and secondary endpoints of its Phase 3 trial, according to the release. The release gives no efficacy figures for that trial, and it says only that the company is engaged with the FDA to outline next steps. Halo-Lido, a topical formulation for hemorrhoids, completed a Phase 2b trial in 2023.
The release also says the majority-owned subsidiary, Citius Oncology, Nasdaq: CTOR, has engaged Jefferies as exclusive financial advisor to evaluate strategic alternatives.
What the release leaves out
The release does not name the placement agent for the registered direct offerings, and it does not name the sales agent under the at-the-market facility. It also gives no plan or date for the new financing it says the company needs.