Citius Pharmaceuticals Inc

Citius Pharmaceuticals Inc. (NASDAQ: CTXR) is a pharmaceutical specialty company. The company focuses on anti-infective drugs in adjuvant cancer care, prescription medications, and mesenchymal stem cell therapy while developing and commercializing vital treatment benefits. Mino-Lok, Mino-Wrap, Halo-Lido, NoveCite, and I/ONTAK are the company's five products.

Key Highlights

• I/ONTAK (E7777) completed its pivotal Phase 3 study in December 2021, with topline data expected in the first half of 2022, a biologics licensing application (BLA) filing in the second part of 2022, and the completion of the Mino-Lok Phase 3 trial in 2022.
• The first quarter of 2021 concluded with a net loss of USD 9.2 million, or (USD 0.06) per share, compared to a net loss of USD 8.1 million, or (USD 0.15) per share, in the first quarter of 2020. A rise in general and administrative expenditures is largely responsible for the increase in a net loss.
• For the first quarter ended December 31, 2021, R&D costs were USD 5.5 million, compared to USD 6.2 million for the first quarter ended December 31, 2020, while G&A expenses were USD 2.9 million, compared to USD 1.7 million for the first quarter ended December 31, 2020. The USD 1.2 million increase is mostly attributable to extra pay expenditures for new staff as well as performance bonuses.
• The Company estimates that its available financial resources will be adequate to sustain its operations through March 2023, with cash and cash equivalents of USD 65.4 million as of December 31, 2021.
• Stock-based compensation expenditure was USD 0.9 million in the fiscal quarter ended December 31, 2021, compared to USD 0.3 million the previous year. The rise is mostly due to costs associated with new Citius grants to workers, directors, and consultants.
• CTXR stock is in a downtrend from the previous year June after making a high of USD 4.56 and since then corrected almost 80.68% since then. The current price is below both short-term (50-day) SMA and long-term (200-day) SMA. A break above the price of USD 1.00, might bring some bullish momentum into the stock and till then bears are expected to be in power comparatively.

One-year technical Price Chart (as of 13 May 2022). Source: REFINITIV, Analysis by Kalkine Group

Stock Recommendation

CTXR's stock price has fallen 51.08% in the past six months and is currently leaning toward the lower end of its 52-week range of USD 0.86 to USD 4.56. 

Given the stock's considerable bearish price movement over the past six months, financial results, and technical analysis, we propose a "Watch" rating on the stock at its closing price of USD 0.90, as of 13 May 2022.

Technical Analysis Summary

* Closing price as of 13 May 2022.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.