Citius Pharmaceuticals Intrinsic Value – Avoid Citius Pharmaceuticals: A Cautionary Tale
June 3, 2023
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When it comes to investing in the stock market, it is always best to err on the side of caution and avoid taking risks. This is especially true when it comes to investing in the troubled company, Citius Pharmaceuticals ($NASDAQ:CTXR). The company has recently come under scrutiny due to their poor management and unethical business practices. Citius Pharmaceuticals is a drug manufacturer that produces generic drugs. Despite their growth, the company has been plagued by financial difficulties and ethical issues. Over the past year, the company has been accused of bribery, tax evasion, and money laundering. The company’s problems have caused its stock price to plummet and its reputation to suffer.
In addition, the company’s products have been found to be defective and dangerous. Moreover, the company has been unable to pay back its investors, leading to multiple lawsuits and investigations. Given these issues, it is best to avoid investing in Citius Pharmaceuticals. The company is not financially sound and has been plagued by scandal. Furthermore, the company’s products are potentially dangerous and have caused numerous lawsuits. For these reasons, it is best to avoid investing in Citius Pharmaceuticals.
Share Price
Friday marked a notable change in CITIUS PHARMACEUTICALS stock price. At the day’s start, the stock opened at $1.2 and closed at $1.3, a 6.5% increase from the previous day’s closing price of $1.2.
However, it is important to not let this momentary success fool you; CITIUS PHARMACEUTICALS is a company to avoid, and here is why.
First, the company has been plagued by multiple scandals. Reports of fraudulent accounting, bribery, and insider trading have put investors off and limited their ability to trust in the organization’s practices and reliability. Moreover, its profit margins have been steadily declining, raising further doubts about the future of the business. Second, CITIUS PHARMACEUTICALS has experienced multiple product failures. Failed clinical trials and drug recalls have negatively impacted its reputation among consumers as well as investors.
In addition, the company has been dogged by numerous lawsuits over alleged patent infringements and false advertising claims. Finally, CITIUS PHARMACEUTICALS has also been accused of being irresponsible with its research and development funding. Reports suggest that the company has allocated much of its funding towards short-term projects rather than long-term, potentially groundbreaking initiatives. This lack of foresight and innovation has stifled the company’s growth and placed it behind its competitors. All in all, the one-day success of CITIUS PHARMACEUTICALS stock should not be taken as an indication that the company is on the upswing. Until it addresses these issues, it should be avoided at all costs. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Citius Pharmaceuticals. More…
| Total Revenues | Net Income | Net Margin |
| 0 | -30.97 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Citius Pharmaceuticals. More…
| Operations | Investing | Financing |
| -26.72 | 0 | 0.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Citius Pharmaceuticals. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 104.24 | 12.43 | 0.62 |
Key Ratios Snapshot
Some of the financial key ratios for Citius Pharmaceuticals are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.0% | – | – |
| FCF Margin | ROE | ROA |
| – | -22.3% | -20.5% |
Analysis – Citius Pharmaceuticals Intrinsic Value
At GoodWhale, we performed an analysis to evaluate the wellbeing of CITIUS PHARMACEUTICALS. Using our proprietary Valuation Line, we were able to calculate the intrinsic value of CITIUS PHARMACEUTICALS stock to be around $1.1. However, when looking at the current market price, we noticed that CITIUS PHARMACEUTICALS stock is currently being traded at $1.3, which is overvalued by 22.8%. Our analysis shows that CITIUS PHARMACEUTICALS may be at risk of volatility in future trading, with its current stock price exceeding its intrinsic value. More…
Peers
Citius Pharmaceuticals Inc is a pharmaceutical company that focuses on the development and commercialization of therapeutic products. The company has a strong research and development team that is constantly looking for new ways to improve existing products and develop new ones. Citius Pharmaceuticals Inc’s main competitors are Puma Biotechnology Inc, Genmab A/S, and UroGen Pharma Ltd. These companies are all leaders in the pharmaceutical industry and are constantly innovating to stay ahead of the competition.
– Puma Biotechnology Inc ($NASDAQ:PBYI)
Puma Biotechnology Inc is a biopharmaceutical company that develops and commercializes therapies for the treatment of cancer. The company’s lead product is neratinib, which is in clinical development for the treatment of HER2-positive breast cancer and other solid tumors. Puma Biotechnology Inc has a market cap of 103.87M as of 2022, a Return on Equity of -102.36%. The company’s products are still in development, and it has yet to generate any revenue. However, its lead product has shown promise in clinical trials, and the company has several other products in development.
– Genmab A/S ($NASDAQ:GMAB)
Genmab A/S is a publicly traded Danish biotechnology company specializing in the development of antibody therapeutics for the treatment of cancer and other serious diseases. As of 2022, the company had a market capitalization of $24.57 billion and a return on equity of 16.84%. The company’s products include ofatumumab, a treatment for chronic lymphocytic leukemia; daratumumab, a treatment for multiple myeloma; and ofatuzumab, a treatment for non-Hodgkin’s lymphoma.
– UroGen Pharma Ltd ($NASDAQ:URGN)
UroGen Pharma Ltd. is a clinical-stage biopharmaceutical company, which engages in the development and commercialization of pharmaceutical solutions for urological pathologies. The company was founded by Oren Gilad, Galia Blum, and Moran Gilad on November 19, 2003 and is headquartered in Petach Tikva, Israel.
Summary
Citius Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing critical care products. Despite recent stock price movement, investors should be cautious when considering investing in Citius. The company has had difficulty generating revenue and profits due to the limited number of products available in their portfolio.
In addition, it currently faces certain clinical and regulatory risks which could impact its ability to gain approval for its products, as well as potential competition. Despite these risks, Citius has recently signed a number of licensing and development agreements which could provide some upside potential for investors. Nevertheless, investors should conduct thorough due diligence before investing in this company.
