Full Press Release Details
Citius Pharmaceuticals, Inc. Reports Fiscal
Second Quarter 2026 Financial Results and Provides Business Update
$5.6 Million in net revenue for the first half
of fiscal 2026 from ongoing launch of LYMPHIR
Citius Pharma raised $5 million in a
registered direct offering; Citius Oncology secured up to $36.5 million in debt and equity financing
Advanced patient access with payer coverage
near 100% of commercial lives and 83% of LYMPHIR target accounts on formulary or in review
CRANFORD, N.J., May 15, 2026 - Citius
Pharmaceuticals, Inc. ("Citius Pharma" or the "Company") (Nasdaq: CTXR), a biopharmaceutical company dedicated
to the development and commercialization of first-in-class critical care products, today reported business and financial results for the
fiscal second quarter ended March 31, 2026, and provided a business update, including progress at its majority-owned subsidiary, Citius
Oncology, Inc. (Nasdaq: CTOR).
"The first half of fiscal 2026 demonstrated
meaningful commercial progress at our majority-owned subsidiary Citius Oncology. In the four months of commercial sales since the December
2025 launch of LYMPHIR, Citius Oncology generated $5.6 million in net revenue at approximately 80% gross margins, advanced 83% of target
accounts to formulary inclusion or active review, and secured payer coverage representing near 100% of covered commercial lives with no
reimbursement denials reported to date. Importantly, major academic centers have begun to transition patients to local community infusion
centers for treatment, a critical next phase of commercial scaling. These results reflect our efforts to build a durable patient access
foundation upon which to drive growth," said Leonard Mazur, Chairman and Chief Executive Officer of Citius Pharma and Citius Oncology.
"Subsequent to quarter end, Citius Oncology
secured up to $36.5 million in combined debt and equity financing through its senior secured credit facility with Avenue Capital and the
exercise of outstanding warrants, complemented by Citius Pharma's $5 million registered direct offering. Together, these proceeds
are expected to fund Citius Pharma's activities as well as the completion of the LYMPHIR commercial field force buildout by mid-summer.
This will support expanded physician engagement and broader market penetration, positioning Citius Oncology to accelerate growth as the
launch matures. We believe Citius Oncology maintains sufficient inventory to support anticipated commercial demand, as well as additional
demand outside the U.S., as we begin to see orders for product through our global distribution partners."
"Moreover, we are encouraged by positive
preliminary topline Phase 1 data from two investigator-initiated combination studies, with pembrolizumab and prior to CAR-T therapy, which
reinforce LYMPHIR's potential as a platform asset in combination regimens. At the Citius Pharma level, we also remain focused on
advancing Mino-Lok and Halo-Lido with the FDA and on disciplined execution of our mission to bring first-in-class therapies to patients,"
Fiscal Second Quarter 2026 Business Highlights
and Subsequent Developments
Fiscal Second Quarter 2026 Financial Highlights and Subsequent Events
About Citius Oncology, Inc.
Citius Oncology, Inc. (Nasdaq: CTOR) is a platform
to develop and commercialize novel targeted oncology therapies. In December 2025, Citius Oncology launched LYMPHIR, approved by the FDA
for the treatment of adults with relapsed or refractory Stage I-III CTCL who had had at least one prior systemic therapy. Management
estimates the initial market for LYMPHIR currently exceeds $400 million, is growing, and is underserved by existing therapies. Robust
intellectual property protections that span orphan drug designation, complex technology, trade secrets and pending patents for immuno-oncology
use as a combination therapy with checkpoint inhibitors would further support Citius Oncology's competitive positioning. For more
information, please visit www.citiusonc.com.
About Citius Pharmaceuticals, Inc.
Citius Pharmaceuticals, Inc. (Nasdaq: CTXR) is
a biopharmaceutical company dedicated to the development and commercialization of first-in-class critical care products. Citius Pharma
owns approximately 71% of Citius Oncology. In December 2025, Citius Oncology launched LYMPHIR, a targeted immunotherapy for the treatment
of adults with relapsed or refractory Stage I-III CTCL who had had at least one prior systemic therapy. Citius Pharma's late-stage
pipeline also includes Mino-Lok , a catheter lock solution to salvage catheters in patients with catheter-related bloodstream
infections, and CITI-002 (Halo-Lido), a topical formulation for the relief of hemorrhoids. A pivotal Phase 3 trial for Mino-Lok and a
Phase 2b trial for Halo-Lido were completed in 2023. Mino-Lok met primary and secondary endpoints of its Phase 3 trial. Citius Pharma
is actively engaged with the FDA to outline next steps for both programs. For more information, please visit www.citiuspharma.com.
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 Pharmaceuticals. 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 need for substantial additional funds and our ability to raise additional money to fund our operations
for at least the next 12 months as a going concern; our ability to obtain, perform under and maintain financing, strategic and third party
agreements and relationships, including obtaining a new bulk drug substance supplier; our ability to regain compliance with Nasdaq's
continued listing standards; our ability to successfully commercialize LYMPHIR and establish a sustainable revenue stream; the estimated
markets for LYMPHIR and our product candidates and the acceptance thereof by any market; our ability to secure strategic partnerships
and expand international access to LYMPHIR; our ability to use the latest technology to support our commercialization efforts for LYMPHIR;
physician and patient acceptance of LYMPHIR in a competitive treatment landscape; our reliance on third-party logistics providers, distributors,
and specialty pharmacies to support commercial operations; our ability to educate providers and payers, secure adequate reimbursement,
and maintain uninterrupted product supply; post-marketing requirements and ongoing regulatory compliance related to LYMPHIR; the ability
of LYMPHIR and our product candidates to impact the quality of life of our target patient populations; risks relating to the results of
research and development activities, including those from any new pipeline assets; our ability to procure cGMP commercial-scale supply;
market and other conditions; risks related to our growth strategy; patent and intellectual property matters; government regulation; 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, 2025, filed with the SEC on December
23, 2025 and as amended on January 28, 2026. 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
- Financial Tables Follow -
CITIUS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | September 30, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 4,590,174 | $ | 4,252,290 | ||||
| Accounts receivable, net of allowances | 1,079,055 | - | ||||||
| Inventory | 22,659,590 | 22,286,693 | ||||||
| Prepaid expenses | 3,356,882 | 1,395,490 | ||||||
| Total Current Assets | 31,685,701 | 27,934,473 | ||||||
| Operating lease right-of-use asset, net | 794,518 | 818,694 | ||||||
| Deposits | 38,062 | 38,062 | ||||||
| In-process research and development, net of accumulated amortization | 90,506,250 | 92,800,000 | ||||||
| Deferred financing costs | 169,252 | - | ||||||
| Goodwill | 9,346,796 | 9,346,796 | ||||||
| Total Other Assets | 100,060,360 | 102,184,858 | ||||||
| Total Assets | $ | 132,540,579 | $ | 130,938,025 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 9,453,803 | $ | 13,693,692 | ||||
| License payable | 17,650,000 | 22,650,000 | ||||||
| Accrued expenses | 24,138,264 | 4,190,253 | ||||||
| Accrued compensation | 3,602,007 | 3,292,447 | ||||||
| Note payable | - | 1,000,000 | ||||||
| Operating lease liability | 171,495 | 88,348 | ||||||
| Total Current Liabilities | 55,015,569 | 44,914,740 | ||||||
| Deferred tax liability | 7,803,790 | 7,770,760 | ||||||
| Operating lease liability - noncurrent | 636,667 | 724,925 | ||||||
| Total Liabilities | 63,456,026 | 53,410,425 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred stock - $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | - | - | ||||||
| Common stock - $0.001 par value; 250,000,000 shares authorized; 22,376,427 and 18,067,744 shares issued and outstanding at March 31, 2026 and September 30, 2025, respectively | 22,376 | 18,068 | ||||||
| Additional paid-in capital | 329,775,214 | 306,336,239 | ||||||
| Accumulated deficit | (268,256,054 | ) | (238,804,129 | ) | ||||
| Total Citius Pharmaceuticals, Inc. Stockholders' Equity | 61,541,536 | 67,550,178 | ||||||
| Non-controlling interest | 7,543,017 | 9,977,422 | ||||||
| Total Equity | 69,084,553 | 77,527,600 | ||||||
| Total Liabilities and Equity | $ | 132,540,579 | $ | 130,938,025 |
CITIUS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED MARCH 31,
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | March 31, | March 31, | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | $ | 1,667,298 | $ | - | $ | 5,611,409 | $ | - | ||||||||
| Cost of revenues | (328,878 | ) | - | (1,118,086 | ) | - | ||||||||||
| Gross Profit | 1,338,420 | - | 4,493,323 | - | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Research and development | 1,633,518 | 3,766,525 | 3,233,237 | 5,893,563 | ||||||||||||
| Amortization of in-process research and development | 1,720,312 | - | 2,293,750 | - | ||||||||||||
| General and administrative | 26,391,101 | 4,792,122 | 32,111,828 | 10,179,874 | ||||||||||||
| Stock-based compensation - general and administrative | 3,788,275 | 2,702,031 | 8,068,502 | 5,226,855 | ||||||||||||
| Total Operating Expenses | 33,533,206 | 11,260.678 | 45,707,317 | 21,300,292 | ||||||||||||
| Operating Loss | (32,194,786 | ) | (11,260,678 | ) | (41,213,994 | ) | (21,300,292 | ) | ||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest income | 53,584 | 13,413 | 98,681 | 36,021 | ||||||||||||
| Gain on sale of New Jersey net operating losses | 3,833,277 | - | 3,833,277 | - | ||||||||||||
| Interest expense | (33,031 | ) | - | (188,569 | ) | - | ||||||||||
| Total Other Income, Net | 3,853,830 | 13,413 | 3,743,389 | 36,021 | ||||||||||||
| Loss before Income Taxes | (28,340,956 | ) | (11,247,265 | ) | (37,470,605 | ) | (21,264,271 | ) | ||||||||
| Income tax expense (benefit) | (231,210 | ) | 264,240 | 33,030 | 528,480 | |||||||||||
| Net Loss | (28,109,746 | ) | (11,511,505 | ) | (37,503,635 | ) | (21,792,751 | ) | ||||||||
| Net loss attributable to non-controlling interest | 6,878,606 | 595,000 | 8,051,710 | 1,108,000 | ||||||||||||
| Net loss applicable to common stockholders | $ | (21,231,140 | ) | $ | (10,916,505 | ) | $ | (29,451,925 | ) | $ | (20,684,751 | ) | ||||
| Net Loss Per Share - Basic and Diluted | $ | (0.95 | ) | $ | (1.27 | ) | $ | (1.34 | ) | $ | (2.58 | ) | ||||
| Weighted Average Common Shares Outstanding | ||||||||||||||||
| Basic and diluted (includes pre-funded warrants from the October 2025 offering) | 22,376,427 | 8,581,207 | 21,931,009 | 8,029,834 |
CITIUS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31, 2026 AND
| 2026 | 2025 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net loss | $ | (37,503,635 | ) | $ | (21,792,751 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation expense | 8,068,502 | 5,226,855 | ||||||
| Issuance of common stock for services | 107,510 | - | ||||||
| Issuance of common stock warrant | 68,597 | - | ||||||
| Amortization of in-process research and development | 2,293,750 | - | ||||||
| Amortization (accretion) of operating lease right-of-use asset | 24,176 | 110,845 | ||||||
| Deferred income tax expense | 33,030 | 528,480 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net of allowances | (1,079,055 | ) | - | |||||
| Inventory | (372,897 | ) | (7,070,487 | ) | ||||
| Prepaid expenses | (1,961,392 | ) | (308,791 | ) | ||||
| Accounts payable | (4,239,889 | ) | 4,441,023 | |||||
| Accrued expenses | 19,948,011 | 8,762,217 | ||||||
| Accrued compensation | 309,560 | 955,048 | ||||||
| Operating lease liability | (5,111 | ) | (117,767 | ) | ||||
| Net Cash Used In Operating Activities | (14,308,843 | ) | (9,265,328 | ) | ||||
| Cash Flows From Investing Activities: | ||||||||
| License fee payments | (5,000,000 | ) | - | |||||
| Net Cash Used in Investing Activities | (5,000,000 | ) | - | |||||
| Cash Flows From Financing Activities: | ||||||||
| Repayment of note payable | (1,000,000 | ) | - | |||||
| Deferred financing costs | (169,252 | ) | - | |||||
| Proceeds from exercise of Citius Oncology pre-funded warrants | 818 | - | ||||||
| Net proceeds from common stock offerings | 20,815,161 | 6,039,858 | ||||||
| Net Cash Provided By Financing Activities | 19,646,727 | 6,039,858 | ||||||
| Net Change in Cash and Cash Equivalents | 337,884 | (3,225,470 | ) | |||||
| Cash and Cash Equivalents - Beginning of Period | 4,252,290 | 3,251,880 | ||||||
| Cash and Cash Equivalents - End of Period | $ | 4,590,174 | $ | 26,410 | ||||
| Supplemental Disclosures of Cash Flow Information and Non-cash Transactions: | ||||||||
| Interest paid | $ | 105,310 | $ | - | ||||
| Operating lease right-of-use asset and liability recorded | $ | - | $ | 786,697 |