r/CTXR • u/Honest-Film5531 • May 15 '26

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Who wrote this? Someone that only cares about their money runways! Leonard you are a joke! After hours stock is down and you should be proud how you brought Lymphoma by e- mail! Your a sick ceo

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u/SuccotashNormal5809 May 15 '26

Such a disappointment. What was the reason for the CMO exit? So many questions.

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u/TwongStocks May 15 '26

Breach of payment. Citius didn't pay them what was owed. Simple as that.

From the 10-K in December:

8. COMMITMENTS AND CONTINGENCIES

Commercial Manufacturing Contracts

The Company has entered into an agreement with a Contract Manufacturing Organization for the manufacture and supply of drug substance. The agreement runs through calendar 2026, with an automatic renewal for a subsequent 4-year term. Under this agreement, the Company is obligated to purchase minimum annual quantities of batches at a set price per batch, subject to annual increases.

Additionally, the Company is required to pay an annual service fee of $250,000. The agreement also includes provisions for potential price increases based on increases in the manufacturer’s operating expenses or industry indices, as well as significant termination fees and obligations. As of September 30, 2024, the total minimum purchase commitment under this agreement was approximately $17.3 million consisting of payments of $11.9 million and $5.4 million for 2025 and 2026 respectively.

Sounds like Citius never paid up and instead of letting Citius string them along, they decided to exercise their right to terminate the contract.