CRANFORD, N.J. - Citius Pharmaceuticals, Inc. (NASDAQ: NASDAQ:CTXR), a late-stage biopharmaceutical company, has received $2.4 million through New Jersey's Technology Business Tax Certificate Transfer Program, also known as the Net Operating Loss (NOL) Program. This initiative is part of the New Jersey Economic Development Authority's (NJEDA) efforts to support technological advancement and economic growth within the state.
The NOL Program allows companies with net operating losses and unused R&D tax credits to convert these into non-dilutive capital by selling them to unrelated profitable corporations. Jaime Bartushak, Chief Financial Officer of Citius, expressed gratitude for the financial flexibility provided by the program, which enables the company to continue advancing its product pipeline.
Citius, focused on developing critical care products, has several late-stage product candidates. The company completed enrollment for a Phase 3 trial of Mino-Lok®, aimed at treating catheter-related bloodstream infections, and is preparing to resubmit a Biologics License Application for LYMPHIR™, an immunotherapy for cutaneous T-cell lymphoma. Additionally, Citius has finished enrolling participants in a Phase 2b trial for a hemorrhoid relief treatment.
The NJEDA plays a vital role in fostering a robust and equitable economy in New Jersey, partnering with various stakeholders to enhance the state's economic vitality. The authority's programs, including the NOL Program, are designed to create jobs and support communities while promoting New Jersey as a competitive location for business.
This funding announcement is based on a press release statement.
InvestingPro Insights
Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) has been actively navigating the biopharmaceutical landscape with a focus on critical care product development. According to real-time data from InvestingPro, Citius holds a market capitalization of $115.03 million, reflecting its standing in the industry amidst its ongoing clinical trials and product development efforts.
InvestingPro Data metrics reveal that the company has a Price to Earnings (P/E) Ratio of -2.78, which is adjusted to -2.89 for the last twelve months as of Q1 2024. This indicates that investors are currently valuing the company despite its lack of profitability in the recent period. The Price to Book (P/B) Ratio stands at 1.34 for the same period, offering insight into how the market values the company's assets relative to its share price.
An InvestingPro Tip highlights that Citius has more cash than debt on its balance sheet, which is a positive sign for financial stability and future investments. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a comfortable liquidity position to meet near-term financial needs.
On the flip side, another InvestingPro Tip points out that analysts do not anticipate Citius will be profitable this year, aligning with the negative P/E ratio. Moreover, the company's weak gross profit margins and the fact that it is not profitable over the last twelve months may warrant caution among investors.
Despite these challenges, Citius has shown a strong return over the last month, with a 16.89% price total return, which is a notable metric for short-term investors. However, it's essential to consider the broader time horizon, where the 1-year price total return stands at -36.73%, reflecting volatility and the risks inherent in the biopharmaceutical sector.
Investors seeking more in-depth analysis and additional InvestingPro Tips, such as Citius' dividend policy and analyst targets, can find them at https://www.investing.com/pro/CTXR. Currently, there are 7 additional InvestingPro Tips available for Citius, offering a comprehensive understanding of the company's financial health and market performance.
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