Citius Oncology Shares Skyrocket 35% in Pre-Market Following Major Distribution Deal

US Stocks

Citius Oncology Shares Jump 35% in Pre-market After New Drug Deal.

Citius Oncology made headlines this week. Its stock soared more than 35% in Pre-market in one day. Why? The company signed a major distribution deal for its new cancer drug, LYMPHIR™. This drug is designed to treat cutaneous T-cell lymphoma, a rare type of blood cancer.

We’ve been watching Citius build momentum since LYMPHIR got FDA approval last year. But this new deal takes things to the next level. The agreement is with Cencora, one of the largest healthcare distributors in the U.S. This means LYMPHIR will be available in more hospitals and treatment centers nationwide.

Investors reacted fast. Trading volume spiked. Market confidence grew. And now, Citius is preparing for a full-scale commercial launch. In this article, we break down what this deal means, why the stock reacted so strongly, and what comes next for the company’s big push into cancer treatment.

About Citius Oncology and LYMPHIR

Citius Oncology operates as a majority-owned subsidiary of Citius Pharmaceuticals (NASDAQ: CTXR). The company developed LYMPHIR™, which is the commercial name for denileukin diftitox-cxdl.

This drug targets relapsed or refractory cutaneous T‑cell lymphoma (CTCL), a rare cancer affecting the skin in Adults. It’s approved for Stage I–III cases and is intended for patients who have previously undergone at least one systemic treatment. This marks the first newly approved treatment for CTCL in several years.

In 2021, LYMPHIR (known as denileukin diftitox) got approval in Japan. Citius acquired global rights (excluding parts of Asia). The FDA granted its approval in August 2024.

Key Details of the Cencora Deal

Cencora (previously known as AmerisourceBergen) entered into a distribution services agreement with Citius Oncology on July 15, 2025. As part of this deal:

  •  Cencora will act as the nationwide wholesale distributor for LYMPHIR.
  • They will manage storage, shipping, and delivery to treatment centres.
  • The move adds to an earlier deal made with Cardinal Health on June 9, 2025.

The agreement is meant to ensure smooth supply and is part of a broader plan to prepare for LYMPHIR’s U.S. launch.

CEO Leonard Mazur commented

Partnering with Cencora strengthens our distribution network and helps drive both short-term revenue and long-term value for shareholders.

How the Stock Reacted

Citius Oncology’s stock surged 35% in Pre-market during the day following the announcement. In the pre‑market, CTOR climbed about 12%. Volume increased sharply as many investors entered the market.

On Investing.com, the stock showed a 4.1% rise, highlighting strong market movement.

This sharp rise comes on the heels of several earlier swings:

  • A 10% plunge on June 18 as Citius prepared for production.
  • A 16% drop around June 23 amid broader biotech volatility.

These ups and downs reflect the biotech sector’s usual swings.

Why Distribution Deals Matter

Effective distribution is essential for launching any new medication, particularly in the field of oncology. We from within the industry know that:

  1. Broader reach: Partners like Cencora and Cardinal Health bring nationwide coverage.
  2. Supply stability: They ensure timely delivery to hospitals and clinics.
  3. Scalability: They allow for launching in waves, starting with top cancer centres and expanding further.

Citius Oncology estimates LYMPHIR has a U.S. market potential of over $400 million. These partnerships help turn that potential into actual revenue once the drug is on the shelves.

The timing aligns well with projected mid-to-late 2025 commercial launch plans. The company is building what it calls a “disciplined execution” framework to ensure every part of the launch is ready.

Recent Financial Moves

In June 2025, Citius Pharmaceuticals raised about $6 million via a registered direct offering. A total of 4.92 million shares were issued for $1.22 per share. The deal also included warrants for up to 9.84 million shares, exercisable at $1 over 24 months.

The net funds will support the LYMPHIR launch and other corporate efforts. If the warrants are fully used, Citius could gain another $9.8 million.

Risks and Key Milestones

Like any biotech company, Citius Oncology faces multiple risks:

  • Execution risk: Launching a drug requires a lawless supply chain and marketing.
  • Manufacturing: Ensuring quality production at scale.
  • Regulatory obligations: Reporting safety and monitoring side effects.

LYMPHIR’s label includes a boxed warning for capillary leak syndrome. Typical side effects may include nausea, tiredness, and swelling.

Upcoming milestones to watch:

  • First commercial shipments of LYMPHIR.
  • Initial sales data post-launch.
  • Potential new partnerships or expansion deals.
  • Citius Pharmaceuticals’ earnings report in mid-August 2025.

Analyst Insight and Market Sentiment

Analysts have taken notice. On GuruFocus, Citius Pharmaceuticals (CTXR) received an “Outperform” rating. Price targets range from $4 to $9, averaging $6.50, suggesting room for share value growth.

These targets reflect the added value of LYMPHIR’s launch, funded partly by the recent capital raise and now supported by strong distribution networks.

Conclusion

We from the industry view Cencora’s deal as a final major step in LYMPHIR’s launch strategy. The 35% stock surge in Pre-market shows the market sees tangible value in this agreement.

Citius Oncology is better positioned to bring LYMPHIR to patients and begin collecting sales data. As distribution ramps up, milestones like first shipments and revenue reports will guide the next share moves.

This deal with Cencora shifts LYMPHIR from innovation to implementation, something that matters to patients and shareholders alike.

Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.