Citius Oncology, Inc. Reports Fiscal Second Quarter 2025 Financial Results and Provides Business Update
- FDA approval received for LYMPHIR for treating cutaneous T-cell lymphoma
- Company transitioning from development to commercial stage
- Ongoing discussions with potential commercial and strategic partners
- Retained Jefferies LLC as financial advisor for strategic alternatives
- Net loss increased to $7.7M in Q2 2025 from $4.8M in Q2 2024
- Only $112 in cash reserves as of March 31, 2025
- Additional capital needed beyond May 2025 for continued operations
- Increased operating expenses with R&D up 138% and G&A up 57% YoY
Insights
Citius Oncology faces imminent cash crisis with only $112 in reserves despite LYMPHIR approval; funding runway ends May 2025.
The Q2 2025 results for Citius Oncology reveal a precarious financial situation that overshadows their recent FDA approval of LYMPHIR for cutaneous T-cell lymphoma. The most alarming revelation is the company's cash position of just
The company explicitly acknowledges they "will need to secure additional capital to support operations beyond May 2025" – indicating an extremely short runway of less than a month from the reporting date. This urgency explains why they've retained Jefferies LLC to evaluate "strategic alternatives" – typically code for seeking an acquisition, merger, or significant financing.
Financial metrics show deteriorating performance, with net losses expanding to
R&D expenses more than doubled year-over-year to
With 71,552,402 shares outstanding and imminent financing needs, significant dilution appears inevitable if they pursue equity financing, while their weak position could force unfavorable terms in any strategic partnership negotiations currently underway.
"In Q2 2025, Citius Oncology advanced its transformation from a development-stage company to a commercial-stage organization. Following FDA approval of LYMPHIR, we intensified our focus on disciplined capital deployment and operational execution to support the success of our planned
"This quarter's progress underscores our commitment to creating long-term value by ensuring LYMPHIR reaches patients with cutaneous T-cell lymphoma. Discussions with prospective commercial and strategic partners are underway as we concurrently pursue opportunities to secure additional capital to enhance our financial flexibility. These efforts are critical as we lay the foundation for sustained commercial success. With disciplined execution and a focused strategic vision, we believe Citius Oncology is poised to deliver meaningful near-term impact and durable shareholder value," concluded Mazur.
FISCAL SECOND QUARTER 2025 FINANCIAL RESULTS:
Liquidity
Citius Oncology is a subsidiary of Citius Pharma. Citius Pharma plans to continue to fund Citius Oncology until Citius Oncology raises adequate capital through equity financings from outside investors and/or generates revenue from the future sales of LYMPHIR. Citius Oncology has also retained Jefferies LLC as exclusive financial advisor to evaluate strategic alternatives aimed at maximizing stockholder value.
As of March 31, 2025, the Company had
Research and Development (R&D) Expenses
R&D expenses were
General and Administrative (G&A) Expenses
G&A expenses were
Stock-based Compensation Expense
For the quarter ended March 31, 2025, stock-based compensation expense was
Net loss
Net loss was
About Citius Oncology, Inc.
Citius Oncology specialty is a biopharmaceutical company focused on developing and commercializing novel targeted oncology therapies. In August 2024, its primary asset, LYMPHIR, was approved by the FDA for the treatment of adults with relapsed or refractory CTCL who had had at least one prior systemic therapy. Management estimates the initial market for LYMPHIR currently exceeds
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are made based on our expectations and beliefs concerning future events impacting Citius Oncology. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "plan," "should," and "may" and other words and terms of similar meaning or use of future dates. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated, and, unless noted otherwise, that apply to Citius Oncology are: our need for substantial additional funds and our ability to raise additional money to fund our operations beyond May 2025 and for at least the next 12 months as a going concern; our ability to commercialize LYMPHIR, including covering the costs of licensing payments, product manufacturing and other third-party goods and services, and any of our other product candidates that may be approved by the FDA; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; the estimated markets for our product candidates and the acceptance thereof by any market; our ability to regain compliance with Nasdaq's continued listing standards; the ability of our product candidates to impact the quality of life of our target patient populations; our dependence on third-party suppliers; our ability to procure cGMP commercial-scale supply; risks related to research using our assets but conducted by third parties; uncertainties relating to preclinical and clinical testing; market and other conditions; risks related to our growth strategy; patent and intellectual property matters; our ability to identify, acquire, close and integrate product candidates and companies successfully and on a timely basis; government regulation; competition; as well as other risks described in our Securities and Exchange Commission ("SEC") filings. These risks have been and may be further impacted by any future public health risks. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding our business are described in detail in our SEC filings which are available on the SEC's website at www.sec.gov, including in Citius Oncology's Annual Report on Form 10-K for the year ended September 30, 2024, filed with the SEC on December 27, 2024, as amended on January 27, 2025, Citius Oncology's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 14, 2025, and as updated by our subsequent filings with the SEC. These forward-looking statements speak only as of the date hereof, and we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
Investor Contact:
Ilanit Allen
ir@citiuspharma.com
908-967-6677 x113
Media Contact:
STiR-communications
Greg Salsburg
Greg@STiR-communications.com
-- Financial Tables Follow –
CITIUS ONCOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
March 31, | September 30, | |||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 112 | $ | 112 | ||||
Inventory | 15,339,253 | 8,268,766 | ||||||
Prepaid expenses | 2,700,000 | 2,700,000 | ||||||
Total Current Assets | 18,039,365 | 10,968,878 | ||||||
Other Assets: | ||||||||
In-process research and development | 73,400,000 | 73,400,000 | ||||||
Total Other Assets | 73,400,000 | 73,400,000 | ||||||
Total Assets | $ | 91,439,365 | $ | 84,368,878 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 7,676,310 | $ | 3,711,622 | ||||
License payable | 28,400,000 | 28,400,000 | ||||||
Accrued expenses | 8,722,168 | — | ||||||
Due to related party | 4,941,664 | 588,806 | ||||||
Total Current Liabilities | 49,740,142 | 32,700,428 | ||||||
Deferred tax liability | 2,256,480 | 1,728,000 | ||||||
Note payable to related party | 3,800,111 | 3,800,111 | ||||||
Total Liabilities | 55,796,733 | 38,228,539 | ||||||
Stockholders' Equity: | ||||||||
Preferred stock - | — | — | ||||||
Common stock - | 7,155 | 7,155 | ||||||
Additional paid-in capital | 89,308,821 | 85,411,771 | ||||||
Accumulated deficit | (53,673,344) | (39,278,587) | ||||||
Total Stockholders' Equity | 35,642,632 | 46,140,339 | ||||||
Total Liabilities and Stockholders' Equity | $ | 91,439,365 | $ | 84,368,878 | ||||
CITIUS ONCOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2025 AND 2024 (Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | ||||||||
Operating Expenses | ||||||||||||||||
Research and development | 3,139,413 | 1,348,966 | 4,403,921 | 2,497,461 | ||||||||||||
General and administrative | 2,243,327 | 1,385,580 | 5,565,306 | 2,903,488 | ||||||||||||
Stock-based compensation – general and administrative | 2,088,572 | 1,957,000 | 3,897,050 | 3,874,000 | ||||||||||||
Total Operating Expenses | 7,471,312 | 4,691,546 | 13,866,277 | 9,274,949 | ||||||||||||
Loss before Income Taxes | (7,471,312) | (4,691,546) | (13,866,277) | (9,274,949) | ||||||||||||
Income tax expense | 264,240 | 144,000 | 528,480 | 288,000 | ||||||||||||
Net Loss | $ | (7,735,552) | $ | (4,835,546) | $ | (14,394,757) | $ | (9,562,949) | ||||||||
Net Loss Per Share - Basic and Diluted | $ | (0.11) | $ | (0.07) | $ | (0.20) | $ | (0.14) | ||||||||
Weighted Average Common Shares Outstanding | ||||||||||||||||
Basic and diluted | 71,552,402 | 67,500,000 | 71,552,402 | 67,500,000 | ||||||||||||
CITIUS ONCOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 31, 2025 AND 2024 (Unaudited) | ||||||||
2025 | 2024 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net loss | $ | (14,394,757) | $ | (9,562,949) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Stock-based compensation expense | 3,897,050 | 3,874,000 | ||||||
Deferred income tax expense | 528,480 | 288,000 | ||||||
Changes in operating assets and liabilities: | ||||||||
Inventory | (7,070,487) | |||||||
Prepaid expenses | (1,171,920) | |||||||
Accounts payable | 3,964,688 | (785,132) | ||||||
Accrued expenses | 8,722,168 | (259,071) | ||||||
Due to related party | 4,352,858 | 7,617,072 | ||||||
Net Cash Provided By Operating Activities | - | - | ||||||
Net Change in Cash and Cash Equivalents | - | - | ||||||
Cash and Cash Equivalents – Beginning of Period | 112 | - | ||||||
Cash and Cash Equivalents – End of Period | $ | 112 | $ | - | ||||
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SOURCE Citius Oncology, Inc.
FAQ
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