Citius Oncology Reports Increased Net Loss and Financial Challenges in Q2 2025

Citius Oncology, Inc. reported its financial results for the second quarter of fiscal year 2025, ending March 31, 2025, revealing a net loss of $7.7 million, compared to a net loss of $4.8 million for the same period in the previous year. The company has not generated any revenue during this period, maintaining a consistent trend from the prior year. Total operating expenses for the quarter increased to $7.5 million, up from $4.7 million in the same quarter of 2024, primarily driven by higher research and development costs, which rose to $3.1 million from $1.3 million, and increased general and administrative expenses, which grew to $2.2 million from $1.4 million.

For the six months ending March 31, 2025, Citius Oncology reported a net loss of $14.4 million, compared to a net loss of $9.6 million for the same period in 2024. The increase in losses was attributed to a significant rise in operating expenses, which totaled $13.9 million, compared to $9.3 million in the prior year. The company’s accumulated deficit reached $53.7 million as of March 31, 2025, reflecting ongoing financial challenges. The company had only $112 in cash and a negative working capital of approximately $31.7 million, raising concerns about its ability to continue operations without additional funding.

Citius Oncology has been actively pursuing strategic initiatives, including the commercialization of its oncology immunotherapy product, LYMPHIR (denileukin diftitox), which received FDA approval in August 2024. The company is currently focused on pre-commercial and commercial launch activities, which have contributed to the increase in general and administrative expenses. Additionally, Citius Oncology has entered into various agreements related to the manufacturing and supply of LYMPHIR, with minimum purchase commitments totaling approximately $17.3 million for 2025 and 2026.

The company continues to rely on funding from its parent company, Citius Pharmaceuticals, which has provided financial support through a promissory note and other funding mechanisms. Citius Pharma recently closed a registered direct offering, generating approximately $1.7 million, which is expected to sustain Citius Oncology's operations through May 2025. However, the company acknowledges the need for substantial additional financing to meet its obligations and support ongoing operations. Citius Oncology has retained Jefferies LLC as its financial advisor to explore strategic alternatives aimed at maximizing shareholder value.

Looking ahead, Citius Oncology faces significant challenges, including the need to raise capital and generate revenue from LYMPHIR sales to ensure its long-term viability. The company has expressed uncertainty regarding its ability to continue as a going concern, emphasizing the importance of successful commercialization and securing additional funding. The outcome of these efforts will be critical in determining the company's future trajectory and operational stability.