Citius Pharmaceuticals (CTXR) posted a 25Q1 loss of $9.8 million or $1.30 per share. I had projected a loss of $7.0 million or $0.93 per share. Operating expenses, including R&D, G&A and (non-cash stock-based compensation, were greater than expected across the board. The company’s cash burn – negative cash flow from operating activities – was also higher than projected at $4.7 million vs. my projection of $4.1 million.
The higher than expected R&D expense was a surprise because I had anticipated that the company would be scaling back its R&D activities until its cash needs were resolved. In its commentary, however, the company indicated that this expense would be coming down in future quarters. G&A expense was twice what I had expected; but since it was consistent with 24Q4 levels, it appears that my projection was off, as the company has scaled up its operations to prepare for the upcoming launch of LYMPHIR.
The greater than anticipated net loss and cash shortfall prompted Citius to return to the capital markets in early January and again in early April to raise equity in order to continue to fund its operations. After the end of the 25Q1 quarter, it raised $487,050 from at-the-market offerings of 122,650 shares and also received net proceeds of $2.7 million from a registered direct offering of 743,946 shares. In early April, Citius announced another registered direct offering for $2.0 million.
Based upon Citius’s 10-Q and earnings press release disclosures, I have raised my revenue projections but I still see the company needing to raise an additional $7.5 million or more before the end of the year. There is as yet no word on efforts by the company to evaluate strategic alternatives, for which it has engaged Jefferies LLC as its exclusive financial advisor. The constant need to raise equity has weighed heavily on the share prices of Citius and its subsidiary, Citius Oncology (CTOR). The stocks have lost 76% and 44% of their values, respectively, since the beginning of the year. Both are now trading below $1, which could lead to their delisting from NASDAQ. Unless sales of LYMPHIR take off or the company is able to find a strategic partner or buyer for CTOR, it is highly likely that CTXR shareholders will continue to see their equity interests diluted. Yet, the combined equity market value of CTXR and CTOR is only $53 million, which seems shockingly low for an entity with an approved FDA cancer treatment. For now, I am withdrawing my performance rating on CTXR. While I intend to keep the company under coverage, I am discontinuing quarterly reports. I will provide updates going forward as developments warrant.
This is a summary of Lark Research’s update report on Citius Pharmaceuticals, Inc. (CTXR). To obtain a copy of the report, reach out to Steve Percoco using the contact information provided below.
June 20, 2025 (Report published on April 11, 2025.)
Stephen P. Percoco
Lark Research
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© 2015-2025 by Stephen P. Percoco, Lark Research. All rights reserved.
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