Citius Pharmaceuticals has been making big preparations as it gears up for the commercialization of its two late-stage products, including realigning its management team.
On May 25, the Cranford-based, late-stage biopharmaceutical company announced its latest move: It intends to split its assets into two separate publicly traded entities to better focus on each launch.
Citius plans to form a new company, NewCo, to focus on developing and commercializing I/ONTAK, a treatment for cutaneous T-cell lymphoma, which completed a Phase 3 trial in December 2021. The company is planning to submit a biologics license application in the second half of 2022.
The company’s other pipeline assets, including Mino-Lok – an antibiotic treatment for catheter-related bloodstream infections – would remain at Citius, which would continue to trade on Nasdaq under its current ticker, CTXR.
“As Citius prepares for the commercialization of its two late-stage product candidates, I/ONTAK and Mino-Lok, we believe that the market has not adequately valued the potential of our recent I/ONTAK licensing agreement. It is our view that a spinoff and IPO would create two focused standalone public companies that are better positioned to pursue their strategic priorities, invest in growth opportunities and attract new investors,” Executive Chairman Leonard Mazur said in a statement.
Mazur added that NewCo would be a “pure-play oncology-focused biopharmaceutical company.”
Citius intends the spinoff to be accomplished through an initial public offering and pro rata distribution of stock in the NewCo to Citius shareholders. The company expects the moves to be completed in the second half of 2022, subject to customary conditions.
“Our intention is that the spinoff will be non-dilutive and tax-fee to Citius shareholders,” Mazur said.
Mazur recently spoke with NJBIZ about the innovations the company has in the works and elaborated on its management realignment.