CRANFORD, N.J., United States – May 5, 2026
Citius Oncology, Inc. has announced financing agreements totaling up to $36.5 million to accelerate the commercialization of LYMPHIR® (denileukin diftitox-cxdl), the company’s FDA-approved therapy for relapsed or refractory cutaneous T-cell lymphoma (CTCL). The financing package includes a senior secured credit facility of up to $25 million from Avenue Capital Group alongside approximately $11.5 million in gross proceeds from the immediate exercise of outstanding warrants by a healthcare-focused institutional investor. The combined funding is expected to strengthen the company’s commercial execution strategy, expand patient access, support sales infrastructure growth, and provide additional working capital as Citius Oncology scales the launch of its first FDA-approved oncology product.
Strategic Financing Supports LYMPHIR Commercial Launch
The financing structure is designed to align capital availability with the commercial performance of LYMPHIR. Under the agreement, Avenue Capital Group will provide an initial $10 million tranche funded at closing, while two additional tranches totaling up to $15 million will become available upon achievement of predefined revenue milestones and liquidity conditions. The credit facility carries a term of 3.5 years and includes warrants allowing Avenue to purchase common shares at an exercise price of $0.90 per share.
Concurrently, Citius Oncology secured approximately $11.5 million through the exercise of existing warrants originally issued during prior financing rounds. The company also issued new unregistered warrants tied to the transaction, creating additional long-term financing flexibility. According to management, the proceeds will primarily be used to fund sales force expansion, physician outreach, market access initiatives, medical affairs activities, manufacturing support, and broader commercialization efforts for LYMPHIR in the United States.
LYMPHIR Targets Underserved CTCL Market
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LYMPHIR was approved by the U.S. Food and Drug Administration (FDA) for treatment of adults with Stage I-III relapsed or refractory cutaneous T-cell lymphoma after at least one prior systemic therapy and officially launched in the U.S. market in December 2025. The therapy is a targeted immune treatment that combines the IL-2 receptor binding domain with diphtheria toxin fragments to selectively destroy IL-2 receptor-expressing tumor cells.
In addition to direct cytotoxic activity, the therapy has demonstrated the ability to reduce immunosuppressive regulatory T cells (Tregs), potentially improving anti-tumor immune response. Citius Oncology believes the addressable U.S. CTCL market exceeds $400 million, with significant unmet need due to limited effective treatment options currently available for patients with relapsed or refractory disease.
Institutional Backing Reflects Confidence in Commercial Potential
The financing agreements highlight growing institutional confidence in LYMPHIR’s commercial opportunity and the company’s long-term oncology strategy. CEO Leonard Mazur stated that the financing strengthens Citius Oncology’s ability to continue executing on the LYMPHIR launch while maintaining financial flexibility for future growth.
Avenue Capital Group also emphasized the differentiated profile of LYMPHIR and its targeted commercial opportunity as key reasons for supporting the company. Importantly, the financing structure allows Citius Oncology to secure substantial operational capital while limiting immediate large-scale shareholder dilution, a critical factor for emerging commercial-stage pharmaceutical companies.
Commercial Expansion and Future Growth Outlook
Beyond the current CTCL indication, LYMPHIR may offer broader future opportunities within oncology and immunotherapy markets. The product benefits from orphan drug positioning, intellectual property protections, and ongoing interest in combination immuno-oncology approaches, which could strengthen long-term market potential. Prior to its U.S. approval, denileukin diftitox received regulatory approval in Japan for treatment of relapsed or refractory CTCL and peripheral T-cell lymphoma (PTCL). As commercialization activities continue to expand in the United States, the newly secured financing provides critical support for physician adoption efforts, manufacturing scale-up, and patient access initiatives. The transaction also reflects continued investor interest in pharmaceutical companies with recently launched specialty oncology therapies and scalable revenue potential.
Source: Citius Oncology press release
