Citius Pharmaceuticals Inc. (Nasdaq: CTXR) announced the successful closing of its registered direct offering, raising approximately $6 million upfront with the potential for an additional $9.8 million through warrant exercises. The biopharmaceutical company, focused on developing first-in-class critical care products, structured the offering to support the commercial launch of its recently approved immunotherapy LYMPHIR.
Financing Structure and Terms
The offering consisted of 4,920,000 shares of common stock (or pre-funded warrants) priced at $1.22 per share, accompanied by short-term warrants to purchase up to 9,840,000 additional shares. The warrants carry an exercise price of $1.00 per share, are immediately exercisable upon issuance, and expire twenty-four months from the initial exercise date.
H.C. Wainwright & Co. served as the exclusive placement agent for the transaction, which was conducted under a shelf registration statement filed with the Securities and Exchange Commission in February 2024 and declared effective in March 2024.
Strategic Use of Proceeds
Citius Pharmaceuticals intends to deploy the net proceeds primarily to support the commercial launch of LYMPHIR, including milestone payments, regulatory expenses, and other launch-related costs. The company also plans to allocate funds for general corporate purposes as it advances its critical care portfolio.
LYMPHIR Approval and Market Position
In August 2024, the FDA approved LYMPHIR as a targeted immunotherapy for the treatment of cutaneous T-cell lymphoma, marking a significant milestone for the company's oncology program. This approval represents the first commercial product for Citius Pharmaceuticals and establishes the foundation for its transition from a development-stage to a commercial-stage biopharmaceutical company.
Pipeline Development Progress
Beyond LYMPHIR, Citius Pharmaceuticals maintains a robust late-stage pipeline featuring two additional product candidates that have completed pivotal clinical trials. Mino-Lok, an antibiotic lock solution designed to salvage catheters in patients with catheter-related bloodstream infections, successfully met both primary and secondary endpoints in its Phase 3 trial completed in 2023.
The company's third program, CITI-002 (Halo-Lido), represents a topical formulation for hemorrhoid relief that completed a Phase 2b trial in 2023. Citius Pharmaceuticals is actively engaged with the FDA to determine next steps for both Mino-Lok and CITI-002 programs.
Corporate Structure and Ownership
Citius Pharmaceuticals maintains a 92% ownership stake in Citius Oncology, Inc., which houses the company's oncology-focused assets and development programs. This structure allows the parent company to maintain strategic control over its oncology pipeline while potentially providing flexibility for future partnership or financing opportunities specific to the oncology division.
