Citius Oncology Reports $6.66 Million Net Loss, Faces Liquidity Challenges

Citius Oncology, Inc. reported a net loss of $6.66 million for the three months ending December 31, 2024, compared to a net loss of $4.73 million for the same period in 2023. The company did not generate any revenue during this period. Operating expenses increased significantly to $6.39 million from $4.58 million year-over-year, primarily driven by higher general and administrative costs associated with pre-commercial and commercial launch activities for its oncology product, LYMPHIR (denileukin diftitox). Research and development expenses also rose to $1.26 million, reflecting ongoing costs related to two investigator-initiated immuno-oncology trials.

The company’s total assets increased to $90.48 million as of December 31, 2024, up from $84.37 million at the end of the previous fiscal period. This growth was largely attributed to an increase in inventory, which rose to $14.38 million from $8.27 million, as Citius prepares for the commercial launch of LYMPHIR. However, total liabilities also increased significantly to $49.19 million from $38.23 million, with current liabilities rising due to higher accounts payable and accrued expenses.

Citius Oncology has undergone significant strategic developments, including the completion of a merger with TenX Keane Acquisition in August 2024, which resulted in the company being renamed Citius Oncology, Inc. The merger has positioned the company to leverage its oncology product pipeline more effectively. The company is focused on commercializing LYMPHIR, which received FDA approval in August 2024, and is expected to generate revenue from its sales in the near future.

As of December 31, 2024, Citius Oncology had a negative working capital of approximately $26.3 million and only $112 in cash, raising concerns about its liquidity. The company has relied heavily on funding from its parent company, Citius Pharma, which has committed to supporting Citius Oncology through March 2025. The company plans to continue seeking additional capital through equity financing and aims to generate revenue from LYMPHIR sales. However, there is no assurance that it will be successful in these efforts, which could impact its ability to continue operations beyond the near term.

Looking ahead, Citius Oncology faces substantial challenges, including the need for additional funding and the successful commercialization of LYMPHIR. The company is actively engaged in capital-raising efforts and is exploring strategic partnerships to enhance its financial position. The management has indicated that while they expect to maintain operations through March 2025, the future remains uncertain, and the company may need to make adjustments based on its financial performance and market conditions.