Investing.com -- Citius Oncology, Inc. (NASDAQ: CTOR ) stock rose 4.1% after announcing a distribution services agreement with Cencora for its FDA-approved immunotherapy LYMPHIR.

The agreement with Cencora, formerly known as AmerisourceBergen (NYSE: COR ), will expand the distribution network for LYMPHIR (denileukin diftitox-cxdl), which received FDA approval in August 2024 for treating adults with relapsed or refractory cutaneous T-cell lymphoma. Under the agreement, Cencora will serve as a wholesale distributor for LYMPHIR, providing specialty distribution services across its network.

This new arrangement builds upon a previously announced distribution agreement, further strengthening the company’s distribution strategy for the recently approved drug.

"Our agreement with Cencora adds further depth to our distribution strategy and strengthens our ability to deliver LYMPHIR to treatment centers across the country," said Leonard Mazur, Chairman and CEO of Citius Oncology and parent company Citius Pharmaceuticals.

LYMPHIR is indicated for Stage I-III cutaneous T-cell lymphoma after at least one prior systemic therapy. The drug is a recombinant fusion protein that combines the IL-2 receptor binding domain with diphtheria toxin fragments.

Citius Oncology estimates the initial market for LYMPHIR exceeds $400 million. The company is a majority-owned subsidiary of Citius Pharmaceuticals, Inc. (NASDAQ: CTXR ), which owns 92% of Citius Oncology.

The drug carries a boxed warning for capillary leak syndrome, which can be life-threatening or fatal. Common adverse reactions include increased transaminases, decreased albumin, nausea, edema, decreased hemoglobin, fatigue, and musculoskeletal pain.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.