Citius Pharmaceuticals, Inc. Reports Fiscal Third Quarter 2023 Financial Results and Provides Business Update $33.3 million in cash and cash equivalents as of

Citius Pharmaceuticals, Inc. Reports Fiscal

Financial Results and Provides Business Update

$33.3 million in cash and cash equivalents

as of June 30, 2023; runway through August 2024

CRANFORD, N.J., August 14, 2023 -- 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 third quarter ended June 30, 2023.

Fiscal Q3 2023 Business Highlights and Subsequent

Financial Highlights

"I am pleased to report significant progress

in our pipeline and positive milestones on multiple fronts. We believe we have achieved the minimum 92-event threshold required to complete

the Phase 3 Mino-Lok trial, pending confirmation by a committee of independent reviewers. We have also made progress in other areas of

our business, including announcing positive topline results for the Phase 2b Halo-Lido trial, extending our financial runway through August

2024 with a $15 million capital raise, and clarifying our path toward approval for LYMPHIR (denileukin diftitox)," stated Leonard

Mazur, Chairman and Chief Executive Officer of Citius.

"Although we were disappointed to receive

the FDA's complete response letter for LYMPHIR, we are encouraged that no clinical data issues related to safety or efficacy were

noted. Rather, the FDA focused primarily on enhanced product testing, which we are already addressing. We plan to work closely with the

FDA in preparation for a Resubmission package. The timing of our contemplated spin-off of LYMPHIR will be adjusted in accordance with

the asset's regulatory path. Coupled with our recent financing, we believe we have sufficient funds to advance our pipeline, including

efforts to remediate the CRL, and continue to prepare our commercial infrastructure for the ultimate launch of LYMPHIR, if approved,"

quarter 2023 Financial Results:

As of June 30, 2023, the Company had $33.3 million

in cash and cash equivalents.

As of June 30, 2023, the Company had 146,211,130

common shares outstanding.

On May 8, 2023, the Company closed a registered

direct offering of 12,500,001 common shares and accompanying warrants to purchase up to an aggregate of 12,500,001 shares of its common

stock, at a purchase price of $1.20 per share. The warrants have an exercise price of $1.50 per share, are exercisable six months from

the date of issuance, and expire five years from the date of issuance. The Company also issued 875,000 warrants to the placement agent

as part of the transaction. Net proceeds of the offering totaled $13.8 million.

The Company estimates that its available cash

resources will be sufficient to fund its operations through August 2024. We anticipate the need to raise additional capital in the future

to support our operations beyond August 2024.

Research and Development (R&D) Expenses

R&D expenses were $3.8 million and $11.9 million

for the three and nine months ended June 30, 2023, respectively, compared to $4.9 million and $13.8 million for the comparable periods

ended June 30, 2022. The decrease reflects lower Mino-Lok and LYMPHIR trial costs offset by higher Halo-Lido Phase 2b study costs as the

trial was completed during the three months ended June 30, 2023. Additionally, a decrease of $1 million for the three months ended June

30, 2023, reflects NoveCite manufacturing startup costs incurred in the three months ended June 30, 2022, which are no longer realized.

We expect that research and development expenses

will stabilize in fiscal 2023 as we focus on the commercialization of LYMPHIR and complete our Phase 3 trial for Mino-Lok and our Phase

2b trial for Halo-Lido.

General and Administrative (G&A) Expenses

G&A expenses were $3.7 million and $11.1 million

for the three and nine months ended June 30, 2023, respectively, compared to $3.0 million and $9.0 million for the comparable periods

ended June 30, 2022. The increase was primarily due to pre-launch and market research activities associated with LYMPHIR. General and

administrative expenses consist primarily of compensation costs, professional fees for legal, regulatory, accounting, and corporate development

services, and investor relations expenses.

Stock-based Compensation Expense

For the fiscal quarter ended June 30, 2023, stock-based

compensation expense was $1.2 million as compared to $1.0 million for the prior year period. For the nine months ended June 30, 2023,

stock-based compensation expense was $3.5 million as compared to $2.9 million for the nine months ended June 30, 2022. The increase reflects

expenses related to new grants made to employees (including new hires), directors and consultants.

Net loss was $8.5 million, or ($0.06) per share

for the three months ended June 30, 2023, compared to a net loss of $8.9 million, or ($0.06) per share for the three months ended June

The decrease in the net loss was primarily due

to a decrease in research and development offset by an increase in general and administrative expenses.

Net loss was $22.6 million, or ($0.15) per share

for the nine months ended June 30, 2023, compared to a net loss of $25.6 million, or ($0.18) for the nine months ended June 30, 2022.

The decrease in net loss primarily reflects an

increase in other income from the $3.6 million gain recognized in connection with the sale of certain New Jersey income tax net operating

losses to a third party under the New Jersey Technology Business Tax Certificate Transfer Program offset by increased operating expenses

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 LYMPHIR, a novel IL-2R immunotherapy

for an initial indication in CTCL. 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. At the end of March 2023, Citius completed enrollment in its Phase 2b

trial of CITI-002, 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: risks relating to the results of research and development activities, including those from existing and new pipeline assets; our

need for substantial additional funds; our ability to commercialize our products if approved by the FDA; our dependence on third-party

suppliers; our ability to procure cGMP commercial-scale supply; the estimated markets for our product candidates and the acceptance thereof

by any market; the ability of our product candidates to impact the quality of life of our target patient populations; our ability to obtain,

perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and clinical testing;

the early stage of products under development; market and other conditions; our ability to attract, integrate, and retain key personnel;

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 SEC filings. These risks have been and may be further impacted by Covid-19 and could be 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 Securities and Exchange Commission

("SEC") filings which are available on the SEC's website at www.sec.gov,

including in our Annual Report on Form 10-K for the year ended September 30, 2022, filed with the SEC on December 22, 2022, and updated

by our subsequent filings with the Securities and Exchange Commission. 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.

-- Financial Tables Follow -

CITIUS PHARMACEUTICALS, INC.