Citius Oncology spikes after hiring Jefferies to explore new strategies
Shares of Citius Oncology, a lymphoma drug developer with a market capitalization of $110 million, jumped more than 18% on Monday, January 6, following the announcement that it had hired the investment bank Jefferies as a financial advisor to explore strategic alternatives.
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On Monday, Citius Oncology stock soared more than 18% on the Nasdaq to $1.54 per share. Earlier in the day, the company announced its engagement with the investment bank Jefferies as a financial advisor to explore various strategic alternatives, which may include partnerships, joint ventures, mergers, acquisitions, licensing, and other strategic transactions, according to the company’s press release.
As Citius Oncology gears up to launch its first lymphoma drug, LYMPHIR, now is an opportune time to review different strategies, CEO Leonard Mazur was quoted as saying in the press release.
This exploration aims to “maximize shareholder value,” according to the press release. In the less than six months since Citius Oncology stock began trading on the Nasdaq on August 13, 2024, following a merger with the SPAC TenX Keane Acquisition, its value has halved.
Citius Oncology states that there is no specific timeline for this strategic engagement. The company does not intend to disclose developments unless the board approves a specific transaction or course of action. Moreover, there is no guarantee this process will even result in a strategic transaction, it adds.
About Citius Oncology
Citius Oncology was formerly the oncology division of Citius Pharma. It developed and registered LYMPHIR to treat lymphoma in patients who have not responded to at least one systemic therapy. In August, Citius Pharma announced the spinoff of Citius Oncology as a separate publicly traded entity, which acquired LYMPHIR.
Meanwhile, the parent company kept two other drug candidates. 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.
Since the spinoff, the stock of both companies has been plunging. Citius Oncology has lost half its value, while the parent company’s stock has dropped nearly 75%.
According to MarketWatch, the only analyst who covers Citius Oncology has a “buy” recommendation with a target price of $3 per share, double the current market price.
