Citius Pharmaceuticals Sees Significant Upside After Major Distribution Deal

Citius Pharmaceuticals (CTXR) surged after its subsidiary secured a distribution deal with Cencora for Lymphir, a therapy for cutaneous T-cell lymphoma. Analysts project significant upside potential, with an average target price of $6.50 and a potential 264.21% increase from its current trading price of $1.78. The stock holds an "Outperform" rating from three brokerage firms.

Citius Pharmaceuticals (CTXR) saw a significant rise in its stock price following the announcement of a distribution agreement between its subsidiary, Citius Oncology, and Cencora for the immunotherapy drug Lymphir. The deal, which enhances commercial infrastructure and reinforces launch readiness, is expected to drive growth for the company.

Citius Oncology, a majority-owned subsidiary of Citius Pharmaceuticals, has secured a distribution services agreement with Cencora, a global pharmaceutical solutions provider. This agreement expands the distribution network for Lymphir, a targeted immune therapy for relapsed or refractory cutaneous T-cell lymphoma (CTCL). The drug, approved by the FDA in August 2024, is indicated for use in Stage I-III disease after at least one prior systemic therapy.

The partnership with Cencora, a leader in specialty pharmaceutical distribution and services, builds on a previously announced distribution services agreement. This move is seen as a strategic step towards the long-term scalability and market reach of Lymphir. Leonard Mazur, Chairman and CEO of Citius Oncology and Citius Pharmaceuticals, stated, "Our agreement with Cencora adds further depth to our distribution strategy and strengthens our ability to deliver Lymphir to treatment centers across the country."

Analysts have responded positively to the news, projecting significant upside potential for Citius Pharmaceuticals. The stock holds an "Outperform" rating from three brokerage firms, with an average target price of $6.50, representing a potential 264.21% increase from its current trading price of $1.78.

The agreement with Cencora will see the company serve as a wholesale distributor for Lymphir, facilitating product availability across its extensive distribution network. This strategic move is expected to enhance the commercial launch of the drug and support the company's long-term growth prospects.

References:
[1] https://www.prnewswire.com/news-releases/citius-oncology-expands-distribution-network-for-lymphir-with-execution-of-distribution-services-agreement-with-cencora-302502730.html