Citius Pharmaceuticals, Inc. Reports Fiscal Full Year 2022 Financial Results and Provides Business Update $41.7 million in cash and cash equivalents as of

Citius Pharmaceuticals, Inc. Reports Fiscal

Full Year 2022 Financial Results and Provides Business Update

$41.7 million in cash and cash equivalents

as of September 30, 2022; extends runway through December 2023

Mino-Lok Phase 3 trial closer to completion

with 169 patients recruited, 72 failure events and 17 patients in active treatment or pending data review

I/ONTAK BLA accepted for filing by the FDA; updated

PDUFA target action date is July 28, 2023

Halo-Lido Phase 2b trial progressed; data readout

Multiple value-driving catalysts anticipated in

2023, including a potential drug approval and two trial completions

CRANFORD, N.J., December 22, 2022 -- Citius Pharmaceuticals,

Inc. ("Citius" or the "Company") (Nasdaq: CTXR), a late-stage biopharmaceutical company

dedicated to the development and commercialization of first-in-class critical care products today reported business and financial

results for the fiscal full year ended September 30, 2022.

Fiscal Full Year 2022 Business Highlights and Subsequent Developments

Financial Highlights

"In 2022, we focused on execution across our key development programs:

I/ONTAK, Mino-Lok and Halo-Lido. These efforts, combined with a prudent use of funds, enabled us to meaningfully advance our pipeline.

We believe we have sufficient runway through December 2023 to realize additional value-creating milestones, including a potential FDA

approval and two anticipated trial completions in the coming calendar year," stated Leonard Mazur, Chairman and CEO of Citius.

"Our Phase 3 Mino-Lok trial is now significantly closer to completion.

While we expected to achieve 92 catheter failure events with 144 patients by the end of 2022, the trial's observed catheter failure

event rate has proven to be lower than anticipated. Consequently, we must continue recruiting patients. By successfully re-engaging with

our U.S. trial sites as they recovered from the impact of Covid, we were able to drive patient recruitment. We have now exceeded our targeted

enrollment and have achieved 72 of the required catheter failure events, with additional patients under review. To augment our recruitment

efforts and continue the positive momentum in enrollment, we expanded the Mino-Lok trial to include sites in India. Once all new trial

sites are fully activated, we will have nearly doubled our clinical site footprint. With these additional sites helping to drive incremental

enrollment, we anticipate that the 92-event threshold required to complete the trial is achievable in the coming months," added

"During the year, we also completed a Phase 3 trial and submitted

a BLA for I/ONTAK, an oncology asset we in-licensed just over a year ago. Upon further discussion with the FDA, the PDUFA target date

has been set for July 28, 2023. We remain committed to establishing a robust commercial infrastructure to support I/ONTAK's successful

product launch, if approved. In the second half of 2022, we also extended our support for a Phase 1 investigator-initiated study of I/ONTAK

in combination with pembrolizumab (Keytruda 1) to treat patients with recurrent

or metastatic solid tumors. This study has begun recruiting patients and is the second investigator-initiated trial to explore I/ONTAK's

potential as a combination therapy in much larger immuno-oncology markets. We continue to believe I/ONTAK's value extends beyond

a potential initial indication in persistent or recurrent cutaneous T-cell lymphoma. Earlier in the year, we announced our intention to

spin off I/ONTAK. Given broader market conditions, we continue to evaluate opportunities to further unlock this asset's value,"

"In addition to advancing our Phase 3 trials, we initiated a

Phase 2b trial for Halo-Lido, our prescription strength topical formulation for hemorrhoids. The trial began enrolling patients with symptomatic

Grade II or III hemorrhoids in the second quarter of 2022. Recent recruitment has accelerated and we expect complete trial data available

in the second half of 2023," added Mazur.

"As financial stewards, we continuously evaluate the optimal

capital structure for the company. We believe our anticipated catalysts, along with a healthy cash position, provide us with several strategic

and financial options with which to continue advancing our pipeline. This may include the previously announced potential spinoff of I/ONTAK

into a standalone oncology company, pending market conditions, and other standalone financing alternatives available to us. We are encouraged

by the multiple value-driving catalysts anticipated in calendar 2023, including a potential drug approval and two trial completions, and

look forward to extending our positive momentum in the months ahead," concluded Mazur.

Full Year 2022 Financial

As of September 30, 2022, the Company had $41.7 million in cash and

As of September 30, 2022, the Company had 146,211,130 common shares

The Company estimates that its available cash resources will be sufficient

to fund its operations through December 2023.

Research and Development (R&D) Expenses

R&D expenses were $17.7 million for the full year ended September

30, 2022, compared to $12.2 million for the full year ended September 30, 2021. The increase of $5.5 million is primarily associated with

the completion of the I/ONTAK (E7777) Phase 3 trial and the preparation and submission of the related Biologics License Application to

the FDA, incremental Mino-Lok Phase 3 trial costs related to the addition of a global clinical research organization, Biorasi, and the

opening of international sites in India, as well as costs associated with the initiation of the Halo-Lido Phase 2 study. The increase

was offset primarily by a one-time $5 million license fee paid to Novellus in the year ended September 30, 2021, which did not recur.

We expect that research and development expenses will continue to increase

in fiscal 2023 as we continue to focus on the anticipated commercialization of E7777, our Phase 3 trial for Mino-Lok, our Phase 2b trial

for Halo-Lido, and accelerate our research and development efforts related to Mino-Wrap and ARDS.

General and Administrative (G&A) Expenses

G&A expenses were $11.8 million for the full year ended September

30, 2022, compared to $9.8 million for the full year ended September 30, 2021. The increase was primarily due to additional compensation

costs for new employees and investor relations expenses. General and administrative expenses consist primarily of compensation costs,

consulting fees for our financing activities and corporate development services, and investor relations expenses.

Stock-based Compensation Expense

For the full year ended September 30, 2022, stock-based compensation

expense was $3.9 million as compared to $1.5 million for the prior year. The increase reflects expenses related to new grants made by

Citius and the NoveCite stock option plan. In fiscal year 2022, we granted options to our new employees and additional options to other

employees, directors, and consultants. Stock-based compensation expense includes options granted to directors, employees, and consultants.

At September 30, 2022, unrecognized total compensation cost related

to unvested options for Citius common stock of $5.3 million is expected to be recognized over a weighted average period of 1.9 years and

unrecognized total compensation cost related to unvested options for NoveCite common stock of $0.2 million is expected to be recognized

over a weighted average period of 1.5 years

Net loss was $33.6 million, or ($0.23) per share for the year ended

September 30, 2022, compared to a net loss of $23.1 million, or ($0.23) per share for the year ended September 30, 2021. The increase

in net loss is primarily due to the $5.4 million increase in our research and development expenses, a $1.9 million increase in general

and administrative expenses, and a $2.4 million increase in stock-based compensation expense.

About Citius Pharmaceuticals, Inc.

Citius is a late-stage biopharmaceutical company dedicated to the development

and commercialization of first-in-class critical care products, with a focus on oncology, anti-infectives in adjunct cancer care, unique

prescription products, and stem cell therapies. The Company's diversified pipeline includes two late-stage product candidates, Mino-Lok ,

an antibiotic lock solution for the treatment of patients with catheter-related bloodstream infections, which is currently enrolling patients

in a Phase 3 Pivotal superiority trial, and I/ONTAK (E7777), a novel IL-2R immunotherapy for an initial indication in CTCL, for which

a BLA is under review by the FDA. Mino-Lok was granted Fast Track designation by the FDA. I/ONTAK has received orphan drug designation

by the FDA for the treatment of CTCL and PTCL. In the first half of 2022, Citius initiated a Phase 2b trial for Halo-Lido, a topical formulation

for the relief of hemorrhoids. For more information, please visit www.citiuspharma.com.

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. 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 are: our ability

to successfully undertake and complete clinical trials and the results from those trials for our product candidates; risks relating to

the results of research and development activities, including those from existing and new pipeline assets; uncertainties relating to preclinical

and clinical testing; the early stage of products under development; our need for substantial additional funds; our dependence on third-party