Citius Pharmaceuticals Advances Oncology Subsidiary Merger, Poised for LYMPHIR Commercialization

Citius Pharmaceuticals Inc. (NASDAQ: CTXR) is making significant strides in its strategic reorganization, as shareholders of TenX Keane Acquisition (NASDAQ: TENK) have approved a business combination with Citius' oncology subsidiary. This merger will result in a new publicly traded company, Citius Oncology, Inc., which will continue to be listed on the Nasdaq stock exchange.

Under the terms of the agreement, Citius Pharmaceuticals will receive 65.6 million shares of common stock in Citius Oncology, representing approximately 90% ownership of the new entity. The deal includes a $10 million cash contribution from Citius Pharma to Citius Oncology, along with the assumption of 12.75 million existing options by the new company.

This strategic move is designed to unlock significant value for Citius shareholders by separating the oncology business from the parent company. The spin-off is expected to enhance access to capital markets and foster the development of new applications and intellectual property in the oncology space.

Citius Oncology's primary focus will be on developing and commercializing novel targeted oncology therapies. The company's lead product candidate, LYMPHIR, is poised to be its first market entry. LYMPHIR is a recombinant fusion protein designed to treat T-cell lymphomas, combining the interleukin-2 (IL-2) receptor binding domain with diphtheria toxin fragments.

The U.S. Food and Drug Administration (FDA) has already granted orphan drug designation to LYMPHIR for the treatment of peripheral T-cell lymphoma (PTCL) and cutaneous T-cell lymphoma (CTCL). More recently, the FDA accepted Citius's Biologics License Application (BLA) for LYMPHIR, with a decision expected by August 13, 2024, the assigned Prescription Drug User Fee Act (PDUFA) action date.

Leonard Mazur, CEO of Citius, emphasized the strategic importance of this transaction, stating, "The reason we are doing this is to acquire a Nasdaq listing by having the SPAC acquire the assets and at the same time it enables us to do something to prevent dilution for shareholders." Mazur, who has personally invested $22.5 million in the business, expressed confidence in the potential profitability of LYMPHIR within its first year on the market.

This merger and the potential commercialization of LYMPHIR represent significant milestones for Citius Pharmaceuticals and its shareholders. The creation of Citius Oncology as a separate public entity dedicated to oncology therapeutics could potentially accelerate drug development and create new opportunities in the rapidly evolving field of cancer treatment.

As the biopharmaceutical industry continues to seek innovative approaches to drug development and commercialization, Citius's strategic reorganization may serve as a model for other companies looking to maximize shareholder value and focus resources on specific therapeutic areas. The success of this venture could have far-reaching implications for both the company and the broader oncology market.