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Hope you had a solid weekend — I just got through moving (ugh…) and now I’m fired up to hit this week hard. Besides my top pick in Bullseye (dropping by 9:30am for members only), there’s another setup I’m watching that’s moving against the market right now, and with a stack of FDA catalysts and wild pre-market action, it’s got my full attention today.

TODAY’S TOP ALERT! 

Citius Pharma (Nasdaq: CTXR)

👉  CTXR is TODAY’S #1 ALERT 👈

Happy Monday, Folks,

In case you missed my dispatch last night, I spent the weekend moving, with all the unexpected joys and thrills that entails.

After some much-needed reset, I’m ready to grab this trading week by the horns.

We’re closing in on President Trump’s declared “Liberation Day,” and stock futures suggest the markets extend Friday’s swan dive.

If you’ve followed all the recent trade wars drama, you know these deadlines always seem to be preceded by last-minute “deals” or softening, so be on the lookout for that this week.

With so much pessimism priced into the market already, I think we could see a serious market uptick if that’s the case.

But our President is unpredictable, and that’s great for dealmaking but not great for the markets, so investors will remain on edge.

My strategy is to seek out stocks that have defied the market trend, and my “tactical trade” idea for the day definitely pulled that off on Friday.

Go ahead and pull up Citius Pharmaceuticals Inc (CTXR) right now.

As you can see, the stock has pulled back since November due to a registered direct offering and a reverse split that took place that month…

It completed another direct offering in January, with the net proceeds from the two offerings reaching $6.5 million.

This is typical for biopharma companies that haven’t reached the commercialization stage, though as we’ll see, CTXR is anticipating reaching that imminently.

With its financing shored up, CTXR stock was largely stable over the past month and a half before it took a dip beginning last Monday…

Then on Thursday, it ricocheted off a bottom, climbing as high as 32% on Friday alone before closing up 19%. 

In case you forgot, the market tanked on Friday, making CTXR’s performance a real standout.

👉 Here is the main item I think you should focus on this morning. 

It looks like the market is overlooking a crucial fact:

CTXR’s ~92%-owned subsidiary, Citius Oncology (CTOR), has exploded in the pre-market this morning.

It’s up 67% as of this writing, and Nasdaq reports a pre-market high of 172%.

If CTOR jumps anywhere near as high as those numbers today, it could mean very big things for CTXR.

The underlying value of CTXR is actually up tremendously this morning because of the massive amount of CTOR stock they own – and the stock price isn’t reflecting that (yet)

Dial in to see how this one plays out!

CTXR itself is a late-stage biopharmaceutical company with a diversified pipeline and several near-term catalysts.

The New Jersey-based company is set to completely transform the standard of care in patients with infections stemming from Central Venous Catheters (CVCs).

If its lead candidate, Mino-Lok, is approved — and that’s looking increasingly likely — it would be the first and only FDA-approved antibiotic lock solution for salvaging CVCs.

That may not sound like the most exciting thing, but it would actually be a really huge deal.

For those who don’t know, CVCs are thin tubes that are inserted into large veins in the chest, neck, or groin.

They’re used to provide patients with medications, fluids, and nutrition, and for regular blood sampling.

Every year, 7 million CVCs are used in the U.S., and 4 million of those are long-term, meaning they are used longer than a month.

Each year, approximately 500,000 of these catheters get infected, resulting in conditions known as central line-associated bloodstream infection (CLABSI) and catheter-related bloodstream infection (CRBSI).

The standard “cure” for CLABSI/CRBSI is for the patient to take a round of antibiotics and have the CVC removed and replaced.

The problem is it is extremely painful and even traumatizing to remove/replace a CVC, and it can interrupt care for the patient’s underlying condition…

(Many of these patients are extremely vulnerable — undergoing chemotherapy, ICU patients, etc.)

One study found that 57%–67% of patients had adverse physical and psychological symptoms from CVC removal and replacement, with 32% experiencing moderate-to-severe symptoms.

It’s also very expensive — costing about $10,000 — and the overall CLABSI/CRBSI treatment can cost as much as $65,000.

CTXR is hoping to replace this unacceptable standard of care with Mino-Lok, an antibiotic solution intended to actually salvage infected catheters.

Mino-Lok has gone through a complete Phase 3 trial, and the company reported topline results on May 21, noting that it had achieved the primary endpoint and several secondary endpoints with very high statistical significance.

Citius CEO Leonard Mazur said the CTXR is “extremely pleased by the strong results,” and the company held a Type C meeting with the FDA in November that provided CTXR with “clear, constructive, and actionable guidance.”

The company estimates the potential market for Mino-Lok at more than $1 billion in the U.S. and $2 billion globally.

CTXR spun off of a different lead asset, LYMPHIR, into a wholly owned subsidiary named Citius Oncology, and that subsidiary merged with a SPAC in August.

Let me reiterate:  CTXR holds approximately 92% of the combined company, which operates as Citius Oncology, Inc. (CTOR), which is already up over 60% this morning.

A few days prior to the merger, LYMPHIR was approved by the FDA for the treatment of adults with relapsed or refractory cutaneous T-cell lymphoma (CTCL).

CTCL is a rare form of non-Hodgkin lymphoma that afflicts roughly 3,000 new people each year, and the overall market for it is estimated at $400 million. 

I don’t need to tell you what a huge deal FDA approval is, and CTXR says it plans to commercialize LYMPHIR in the first half of 2025.

CTXR’s third major “shot on goal” is Halo-Lido, “a proprietary topical formulation … that is intended to provide anti-inflammatory and anesthetic relief to individuals suffering from hemorrhoids.”

Halo-Lido had a very positive Phase 2b trial, and Citius is now planning on an end of phase II meeting with the FDA to discuss the next steps in the regulatory and clinical development program.

If all goes well, Halo-Lido would be the first FDA-approved prescription product to treat hemorrhoids, a market Citius estimates at over $2 billion in the U.S. alone.

Citius insiders show strong faith in the company, with co-founder and CEO Leonard Mazur investing $22.5 million of his own money directly into the company, and with co-founder and Executive Vice Chairman Myron Holubiak investing $4 million.

I love companies where management has that type of “skin in the game.” 

Analysts are bullish too: 

• D. Boral Capital upgraded to a $9.00 12-month price target December 30

• Maxim Group reiterated a BUY with a $4.00 price target rating on August 15

• H.C. Wainwright reiterated a BUY with a whopping $100 price target in November

Those price targets represent potential upsides between 158% and 6,350% based on Friday’s closing price.

As you do your own research, be sure to review this investor presentation released just this month as well as the company website.

As always, be sure to approach your trading in a responsible manner. Trading is very risky, and nothing is ever guaranteed, so never trade with more than you can afford to lose. 

Please read the full disclaimer at the bottom of this email as well so you are aware of additional risks and considerations. Always have a well-thought-out game plan that takes your personal risk tolerance into consideration.

Bottom line: CTXR has a strong pipeline that included its first-ever FDA approval last year. MINO-Lok and Halo-Lido could also transform the standards of care for their indications.

The stock ripped as high as 32% during the market meltdown Friday, and it had solid momentum into the close.

With CTOR (a ~92%-owned subsidiary of CTXR) shares up as high as 172% in the pre-market this morning, this could be a huge catalyst for CTXR today.

Stay locked in to CTXR today to watch all the fireworks! 🎇

To Your Success,

Jeff Bishop