Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) received $3.8 million in non‑dilutive capital through New Jersey’s Technology Business Tax Certificate Transfer Program, a state‑run mechanism that allows technology and biotechnology companies with net operating losses to sell unused NOL and research‑and‑development tax credits to profitable New Jersey taxpayers in exchange for cash.
The program’s structure provides a unique source of working capital that does not dilute existing shareholders. By converting tax losses into cash, Citius gains immediate liquidity while preserving ownership stakes, a material advantage for a company that has been operating at negative cash flow and has a “going concern” warning through September 2025.
The infusion is earmarked to support the commercial launch of LYMPHIR, the company’s FDA‑approved oncology therapy that received approval in August 2024 and began U.S. commercialization in December 2025. It also provides financial flexibility to advance late‑stage pipeline candidates, such as Mino‑Lok® and Halo‑Lido, thereby extending the company’s product development trajectory.
Citius’s financial statements show a negative cash flow driven by the high costs of late‑stage drug development and commercialization. The $3.8 million capital raise extends the company’s runway to March 2026, reducing the urgency of the going‑concern warning and giving management additional time to generate revenue from LYMPHIR and other assets.
The non‑dilutive nature of the funding, coupled with the company’s focus on a single oncology segment, positions Citius to strengthen its balance sheet, accelerate product launches, and potentially reduce the need for future equity or debt issuances, thereby enhancing shareholder value over the medium term.
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