Citius Pharmaceuticals Inc (NASDAQ:CTXR) Is A Biotech Runner: Here's Why

It's been a while since we last looked at Citius Pharmaceuticals Inc (OTCMKTS:CTXR) and plenty has happened from an operational perspective across the period. However, from a valuation perspective, Citius hasn't appreciated in line with its operational developments.We think this presents an opportunity to pick up an exposure ahead of what is almost certain to be a near-term market reevaluation that closes the gap on the discrepancy between operational activity and share price.Here is what we are looking at.This company is a biotechnology stock that has two lead assets in development right now.The first, and the one to which we assign the most value as things stand is called Mino-Lok and it is designed to overcome a problem associated with what are called Central Venous Catheters (CVCs). CVCs are long, thin, flexible tubes used to give medicines, fluids, nutrients, or blood products over a long period of time, usually several weeks or more. They are commonly used in cancer patients as a way to deliver chemotherapy. CTXR Daily ChartThey are very effective, but they have common complication associated with them called catheter-related blood stream infections or CRBSIs. CRBSIs can be fatal if not treated and the only real way to treat them right now is to remove the catheter altogether and replace it with a new one in a different part of the body.Citius has created Mino-Lok as an alternative to this removal. Basically, the treatment deals with infection and cleans up after the same time, meaning the catheter in question can remain in use and the patient can avoid the risk of removal related complications. There are as many as 500,000 of these removals conducted annually and – right now – there is no alternative to the current standard of care therapy.Citius conducted some early-stage trials of the treatment and the data showed that it can be effective in pretty much 100% of the target population. Now, the company has to expand its sample size and prove that this number isn't an anomaly.And on the back of a recently completed meeting with the FDA, that's exactly what it is about to do.A phase 3 study protocol has been amended to reflect the opinions of the FDA and the company is now poised to initiate a survey that could serve to underpin a registration application for this asset in the US.In there's still the secondary asset to consider.Citius is developing a pharmaceutical grade hemorrhoid treatment called Hydro-Lido that, if approved, would be the only prescription available in the syndication in the US – a close to $80 million annual market.A recent NASDAQ listing is no doubt going to bring with a flurry of speculative volume and should attract some institutional interest along the way. With the pivotal Mino-Lok trial poised to begin and the hemorrhoid program advancing fast, there is a wave of potential catalysts set to hit press that could compound the influx of speculative volume and really get this running during the coming 12 months.Our only concern with this one right now is cash.At the end of June, 2017, cash on hand came in at just $198,000, which is way off the amount needed to get the ball rolling on the pivotal trial for Mino-Lok. As such, we are probably going to see a near-term raise and this is a dilution risk that must be taken into consideration by anybody considering a position. With that said, the NASDAQ uplisting should help Citius to attract capital on better terms than it might otherwise have been able to trading OTC, which serves to mitigate the aggregate impact of a dilutive raise somewhat.We will be updating our subscribers as soon as we know more. For the latest updates on CTXR, sign up below!Image courtesy of Tamaki Sono via FlickrDisclosure: We have no position in CTXR and have not been compensated for this article.