Citius Pharmaceuticals (NASDAQ:CTXR), Inc., a New Jersey-based pharmaceutical company, has negotiated a deferral of a significant milestone payment related to the U.S. Food and Drug Administration's (FDA) approval of its product, LYMPHIRTM. The payment was originally due on Monday, following the regulatory nod from the FDA.
According to the 8-K filing with the Securities and Exchange Commission dated September 13, 2024, Citius Pharmaceuticals, which trades on the Nasdaq Capital Market under the ticker NASDAQ:CTXR, reached an agreement with Dr. Reddy’s Laboratories SA, a subsidiary of the Indian pharmaceutical giant Dr. Reddy’s Laboratories, Ltd.
The milestone payment was part of the Asset Purchase Agreement signed on September 1, 2021, between Citius Pharmaceuticals and Dr. Reddy’s. The agreement outlined that a payment was triggered following FDA approval of LYMPHIRTM, which Citius Oncology, Inc., a subsidiary of Citius Pharmaceuticals, is responsible for.
As the guarantor of Citius Oncology's obligations under the Asset Purchase Agreement, Citius Pharmaceuticals' negotiation for deferral indicates a collaborative approach to financial management between the two companies.
The specifics of the deferral, including the duration and terms, have not been disclosed, but the filing notes that the deferral is partial and without penalty. All other terms, conditions, and rights of the Asset Purchase Agreement remain unchanged and in full effect. The original agreement and its terms were previously detailed in the company's Form 8-K filed on September 7, 2021, and in the Annual Report on Form 10-K filed on December 15, 2021.
The information provided in this article is based on the latest SEC filing by Citius Pharmaceuticals, Inc.
InvestingPro Insights
In light of Citius Pharmaceuticals' recent FDA approval and financial negotiations, investors may find the following InvestingPro Insights relevant. The company holds more cash than debt on its balance sheet, which could indicate a solid financial position to manage its obligations without the immediate need for external financing. Additionally, Citius Pharmaceuticals' stock price has experienced significant volatility, and the Relative Strength Index (RSI) suggests the stock is currently in oversold territory, potentially presenting a buying opportunity for investors seeking to capitalize on market fluctuations.
InvestingPro Data shows a market capitalization of $93.53 million and a price-to-book ratio over the last twelve months as of Q3 2024 at 1.09, which could suggest that the stock is trading at a fairly valued level relative to its book value. However, it's important to note that analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months, which investors should consider when evaluating the company's future prospects.
For those interested in further analysis, InvestingPro offers additional insights into Citius Pharmaceuticals. There are over 6 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/CTXR, providing a more comprehensive view of the company's financial health and market performance.
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