Citius Oncology, the oncology arm of Citius Pharmaceuticals, completed a registered direct offering of 1,284,404 shares and a private placement of 15,229,358 shares (or pre‑funded warrants) at $1.09 per share, raising $18 million in gross proceeds. The transaction is priced at‑the‑market under Nasdaq rules and is expected to close on or about December 10, 2025.
The capital raise is intended to strengthen the company’s cash position and provide working capital for the commercial launch of LYMPHIR, the FDA‑approved immunotherapy for cutaneous T‑cell lymphoma. LYMPHIR went live on December 1, 2025, and the equity offering is designed to support inventory build‑up, distribution agreements with Cardinal Health and Cencora, and other launch‑enabling activities that were already underway at the time of the financing.
Citius has raised capital repeatedly in the past year—$9 million in July 2025, a September 2025 offering, and several smaller issuances in 2024 and early 2025—to shore up liquidity. The company’s cash runway had been projected to run out by September 2025 without additional funding, prompting the latest equity infusion. The new funds also help mitigate the dilution risk that has been a concern for shareholders amid frequent capital raises.
In pre‑market trading on December 9, the company’s stock fell 13.8%, reflecting typical market reaction to equity offerings that can dilute existing shareholders. The decline underscores investor sensitivity to the dilution impact, even as the company positions itself for a product launch that could generate revenue in the coming months.
Leonard Mazur, Chairman and CEO of Citius Oncology, said the equity raise “provides the necessary liquidity to execute a successful launch of LYMPHIR and to sustain operations through the critical early‑stage commercialization period.” He added that the company remains focused on executing its launch strategy and maintaining disciplined cost management.
The financing underscores the company’s ongoing liquidity challenges but also signals confidence in LYMPHIR’s commercial potential. While the equity offering will dilute current shareholders, the capital is essential for the company to meet launch milestones and to position LYMPHIR for long‑term revenue generation in a $400 million+ market for cutaneous T‑cell lymphoma.
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