Citius Pharmaceuticals, Inc.

CTXR

$0.60

-0.35%

N/A-$0.00

Healthcare

Biotechnology

NASDAQ

Active Trading

Citius Pharmaceuticals, Inc. operates as a specialized pharmaceutical firm concentrating on the development and market introduction of critical care products. Its efforts ...

Fundamental Analysis of CTXR

Key Strengths

Positive gross margin (~44.2% TTM) suggests underlying product/price structure can support profitability if operating discipline improves

Focused critical-care positioning with differentiated product concepts targeting infection reduction and supportive oncology care

Risk Factors

Sustained negative profitability: operating margin ~-8.6% and net margin ~-6.9% (TTM), with deeply negative ROA/ROE

Material cash burn risk: free cash flow is sharply negative (FCF yield ~-5.2% TTM), increasing dependence on external financing

Profitability

Net Margin-651.27%

Operating Margin-863.92%

Valuation

P/E Ratio-0.29x

Current Ratio0.84

Efficiency

ROE-67.15%

ROA-32.53%

Fundamental Analysis of CTXR

Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) is a small-cap biotechnology company focused on critical-care and adjunct oncology therapeutics, plus a pipeline that includes platform-like, potentially differentiated products (e.g., catheter-related infection solutions and stem-cell based therapy). The company’s fundamental picture from the provided most-recent TTM snapshot is dominated by ongoing losses and cash burn, which substantially limits near-term valuation support and increases financing risk. Profitability is deeply negative: gross profit margin is positive at ~44.2%, but operating margin is about -8.6% and net margin about -6.9% (TTM), with EBITDA margin ~-8.2%. Return metrics are also strongly negative: ROA ~ -34.7%, ROE ~ -71.6%, and ROIC/related measures are deeply depressed (all substantially below zero), indicating that despite some gross profitability, operating costs and/or development/commercial execution have not yet translated into sustained earnings power. Balance-sheet quality appears pressured: current ratio is ~0.84 and quick ratio ~0.40, implying limited liquidity coverage without reliance on ongoing working-capital dynamics. Working capital is negative (about -$8.3M). While leverage on a debt-to-equity basis appears modest (~0.108), liquidity and coverage metrics for interest are extremely weak (interest coverage around -88x), which is consistent with negative earnings/EBIT in the TTM period rather than imminent traditional debt distress. Cash flow and shareholder value creation are the key constraint: free cash flow yield is highly negative (free cash flow yield ~ -5.2%) and free cash flow to equity/firm are sharply negative, consistent with burn. Revenue growth and EPS/FCF growth rates are not provided in the dataset (marked as N/A), so trend assessment relies mainly on margin and cash-flow signals. At the same time, the company trades at a low price-to-sales (~0.94) and a very low price-to-book (~0.24), but negative earnings produce nonsensical/negative P/E outputs in the dataset, meaning typical earnings-multiple valuation is not informative. Overall, CTXR looks like a high-risk, execution-driven biotech where fundamentals hinge on (1) whether commercialization and payer/formulary access for its marketed products can drive durable scale, (2) whether pipeline candidates can de-risk clinical/regulatory timelines, and (3) whether the company can fund operations without dilutive capital raises. For long-term investors, the thesis is plausible only if operational progress converts gross margin into sustained operating profitability and cash-flow neutrality; otherwise the stock remains vulnerable to dilution and financing overhang.

Key Strengths of CTXR

Positive gross margin (~44.2% TTM) suggests underlying product/price structure can support profitability if operating discipline improves
Focused critical-care positioning with differentiated product concepts targeting infection reduction and supportive oncology care
Pipeline breadth across anti-infectives and biologics (including mesenchymal stem-cell therapy) provides multiple potential value inflection points
Low nominal debt-to-equity (~0.108) indicates less reliance on traditional leverage than some peers (though liquidity is still a constraint)
Small-company agility and ability to concentrate resources on late-stage commercialization and de-risking milestones
Moderate liquidity snapshot before quick assets are considered (cash ratio ~0.33), which can still be workable if burn moderates

Risk Factors of CTXR

Sustained negative profitability: operating margin ~-8.6% and net margin ~-6.9% (TTM), with deeply negative ROA/ROE
Material cash burn risk: free cash flow is sharply negative (FCF yield ~-5.2% TTM), increasing dependence on external financing
Liquidity constraints: current ratio ~0.84 and quick ratio ~0.40, plus negative working capital (~-8.3M)
Financing/dilution overhang risk is elevated for small-cap biotech when cash runway is insufficient versus operating needs
Coverage metrics are extremely weak (e.g., interest coverage ~-88x), consistent with ongoing losses and limited financial flexibility
High volatility and sentiment sensitivity are typical for pre/small-profit biotech with multiple unresolved catalysts
Clinical/regulatory and commercialization execution risk across pipeline assets remains substantial (typical biotech tail risk)

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$6.70M

-0.3x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin19.97%

Net Profit Margin-651.27%

Debt/Equity Ratio0.11

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of CTXR

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of CTXR

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	-593.31%	—	—	Flat
Operating Margin	—	-785.39%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of CTXR

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	0.839	—	—	Flat
Quick Ratio	—	0.401	—	—	Flat
Debt / Equity	—	0.108	—	—	Flat

Valuation of CTXR

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	-0.44x	—	—	Flat
P/B	—	0.24x	—	—	Flat

Supply Chain of CTXR

RELATIONS

Upstream

Confidential CDMO(s) – LYMPHIR Commercial ManufacturingEisai Co., Ltd.TSE:4523Confidential CMOs (x2) – Mino-Lok ManufacturingAlpex Pharma S.A.Novel Anti-Infective Technologies, LLC (NAT)Novellus Therapeutics (now Ernexa Therapeutics Inc.)NASDAQ:ERNA

Downstream

McKesson CorporationNYSE:MCK Cardinal Health, Inc.NYSE:CAH Cencora, Inc. (formerly AmerisourceBergen)NYSE:CORUniphar plcISE:UPRIntegris Pharma S.A.Er-Kim Pharmaceuticals

Proxies

Citius Oncology, Inc.NASDAQ:CTOREisai Co., Ltd.TSE:4523McKesson CorporationNYSE:MCK

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Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer