Shares of small-cap biopharmaceutical company Citius Pharmaceuticals plummeted nearly 19% on Friday, November 22, hitting an all-time low after the company announced a reverse stock split to regain compliance with listing requirements.
Details
Citius Pharma’s stock dropped 18.8% on the Nasdaq on Friday to close at $0.13 per share — a new all-time low.
Earlier in the day, the company announced a 1-for-25 reverse stock split to comply with Nasdaq’s minimum share price of $1 per share. The number of issued and outstanding common shares will decrease from 193.0 million to 7.7 million, and the authorized share count will fall from 400 million to 16 million. Citius will begin trading on a split-adjusted basis on Tuesday, November 26. The board of directors approved the move, and under Nevada corporate law, shareholder approval was not required, the company stated.
Context
Citius Pharma stock has been in a tailspin since August, following the spin-off of its oncology subsidiary, Citius Oncology, via a SPAC merger. The new entity acquired the only FDA-approved product of Citius Pharma — LYMPHIR, a lymphoma drug. LYMPHIR was added to clinical practice guidelines for oncology in September, a move that makes it easier for doctors to prescribe and for insurers to cover the treatment.
Meanwhile, the parent company has two other drugs under development. One, a treatment for catheter-related infections, is in the final phases of clinical trials. The second, targeting hemorrhoid symptoms, is at an earlier stage of development.
Last week, Citius Pharma announced a $3 million direct share offering (before expenses) at a record-low price. This sent shares tumbling to new lows in the market.
Since the start of 2024, the company’s stock has lost 82% of its value. According to MarketWatch, three analysts currently cover the stock, all of whom rate it as a “buy.”
