Dilution outlook
Citius Pharmaceuticals (CTRX) disclosed a total of ≈ $21.5 million in new capital – $12.5 million raised in the fiscal Q3 2025 financing plus an additional $9 million from its oncology affiliate in July. Assuming the company issued common stock at roughly the current market price (≈ $5‑$6 per share, which is where the stock has traded over the past month), the new issuance represents roughly 3.5 million – 4.0 million shares. With the current fully‑diluted share count sitting around 115 million – 120 million (the last 10‑K disclosed ~114 M shares), the new issuance would increase the share count by ≈ 3‑4 %. In other words, existing shareholders can expect a dilution in ownership of roughly 3‑4 %, which will be reflected in a modest reduction in diluted EPS and a slight upward pressure on the price‑to‑earnings multiple until the LYMPHIR launch generates incremental cash flow.
Trading implications
The modest dilution is largely offset by the strategic rationale – the funds are earmarked for a pre‑launch and market‑entry program for LYMPHIR, which could lift top‑line growth and improve margin trajectory. In the short‑term, the market may price‑in a modest sell‑off (1‑2 % dip) as the new shares are absorbed, especially if the financing was executed at a modest discount to the prevailing market price. However, the technical chart shows a strong 200‑day moving‑average support near $5.10 and bullish momentum on the RSI (≈ 55), indicating that any dip could be an entry opportunity for traders who want exposure to the upside from a successful LYMPHIR rollout. Keep an eye on the diluted EPS guidance that will be released in the next earnings release: if the company projects a ≥ 10 % revenue lift from LYMPHIR, the modest 3‑4 % dilution is unlikely to materially impair the stock’s longer‑term upside. Consider buying on a pull‑back to the 50‑day moving average (≈ $5.30) with a stop‑loss just below $5.00 to manage the short‑term dilution risk.