Biotech

Citius Pharmaceuticals (NASDAQ:CTXR) Makes $6 Million Registered Direct Offering Available

Biotech is big business. Especially for companies on the cutting edge finding solutions for underserved and growing markets. That’s why Citius Pharmaceuticals is attracting new investors to the tune of $6 million in registered direct offering, priced at the market.

The offering is not expected to last long. With companies focusing on critical care drug products and cancer care, in particular, increasingly in the eye of accredited investors, Citius is already in advanced talks for the purchase of its common stock. Exactly 1,280,360 shares are up for grabs in this latest offer, with a purchase price per share of $4.6925 (totaling close to $6 million).

In addition, investors will have the opportunity to purchase up to 640,180 shares of common stock. Subject to satisfying customary closing conditions, the offer is expected to end on December 19, 2017. H.C. Wainwright & Co. will be overseeing the offering and acting as exclusive placement agent.

Why Is This Big News?

The Citius Pharmaceuticals announcement shows their commitment to fulfilling compelling market opportunities, and highlights some of the giant leaps forward in the biotech industry. The fact that the company is already in talks for the purchasing of its stock displays investor confidence in its experienced management team, with proven success in creating value and returns for investors. Citius executives have also demonstrated repeated success in the development and commercialization of leading pharmaceutical products.

Underserved Markets

Citius Pharmaceuticals plans to use the proceeds from this latest deal to advance the clinical trial processes of its latest products, as well as cover the costs of manufacturing expenses, research and development, and general corporate and administrative expenses. It’s an injection of cash that will help propel the company forward and advance the launch date of their two proprietary products for underserved markets, Mino-Lok™ and Hydro-Lido.

With these products on the market, Citius will be able to provide a cost-effective care in the treatment of cancer, which will target large markets with medical needs that are not currently being met. Their flagship Mino-Lok™ product is a patented antibiotic lock solution for patients with CRBSIs (catheter-related bloodstream infections).

These infections can be very serious, especially in patients suffering from cancer and receiving therapy through central venous catheters (CVCs). In patients where venous access presents a challenge, Mino-Lok™ will come as a breakthrough treatment. The product is currently advancing to Phase 3 clinical studies.

The company’s Hydro-Lido product has also reported positive results from its Phase 2a study for hydrocortisone-lidocaine formulation, which is for the treatment of Grade I and II hemorrhoids. Citius aims to bring these products to market and make them widely available by following the FDA’s 505(b)(2) pathway for new drug approvals. This will allow them to accelerate time to market at a lower cost than other FDA new drug approval pathways.

Such a key flow of funding into the company will place Citius in a prime position to finance their product launches and work on future innovations to generate greater shareholder interest.

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Citius Pharmaceuticals (NASDAQ:CTXR) Makes $6 Million Registered Direct Offering Available
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