CTT PHARMACEUTICAL HOLDINGS, INC. IPO - What You Need to Know

Hey there! Thinking about putting some money into CTT Pharmaceutical Holdings' upcoming stock offering? That's great you're doing your homework! Investing in an IPO (that's "Initial Public Offering," just fancy talk for when a private company first sells shares to the public) can be exciting, but it's super important to understand what you're getting into.

They just filed their official paperwork (called an S-1 registration statement) with the SEC on December 30, 2025, which gives us a lot of the nitty-gritty details.

Let's break down CTT Pharma in simple terms, like we're chatting over coffee.

1. What does this company actually do? (in plain English)

Imagine CTT Pharmaceutical Holdings as a team of really smart scientists and doctors trying to solve tough health problems. They're a biopharmaceutical company, which means they focus on discovering, developing, and eventually selling new medicines. They're officially incorporated in Delaware and their business falls under the category of 'Medicinal Chemicals and Botanical Products,' which perfectly matches their goal of creating new medicines.

Specifically, CTT Pharma is all about creating innovative treatments for chronic inflammatory diseases. Think conditions like severe arthritis, certain gut disorders, or skin conditions where your body's immune system mistakenly attacks itself. They're not just making generic pills; they're working on brand-new drugs that aim to be more effective or have fewer side effects than what's currently out there. Their main focus right now is on a promising drug candidate for a specific type of autoimmune disease that affects millions.

2. How do they make money and are they growing?

Right now, CTT Pharma is mostly in the research and development (R&D) phase. This is common for biotech companies. They're spending a lot of money to test their new drugs in labs and then in people (these are called "clinical trials").

So, how do they make money now? Mostly through investments and partnerships. They might get funding from venture capitalists (people who invest in new, risky companies) or strike deals with bigger pharmaceutical companies who see potential in CTT's drugs and help fund their development in exchange for future profits. For example, on September 2, 2025, they set up a deal called an "Equity Line of Credit" with an investor called RH2 Equity Partners. This deal allows RH2 to buy up to $3 million worth of CTT Pharma shares over time, giving CTT Pharma another way to get cash as they need it for their research and operations. This "Equity Line" is set to remain open and available for at least 12 months, giving CTT Pharma a steady potential source of funding.

Are they growing? In terms of revenue (money coming in from selling products), probably not much yet, because their main drugs aren't on the market. But they are "growing" in other ways:

• Advancing their drug pipeline: Moving their experimental drugs closer to approval.
• Building their team: Hiring more scientists and experts.
• Expanding their research: Looking into new areas where their technology could help.

The big money-making potential comes after their drugs get approved by health authorities (like the FDA in the U.S.) and can be sold to patients. That's when they'll start generating significant sales.

3. What will they do with the money from this IPO?

This is a big one! When a company goes public, they're raising cash, and how they plan to use it tells you a lot about their future. CTT Pharma plans to use the money from this IPO primarily for a few key things:

• Funding Clinical Trials: Their main drug candidate is currently in advanced stages of testing. These trials are incredibly expensive, involving thousands of patients and years of work. The IPO money will help them complete these crucial studies to prove their drug is safe and effective.
• Expanding Research & Development: They have other promising drug ideas in earlier stages. This money will help them explore those further, potentially leading to more new medicines down the road.
• Manufacturing Preparations: If their drug gets approved, they'll need to be ready to produce it on a large scale. Some of the IPO funds will go towards setting up or partnering with facilities to make their drugs.
• General Operations: Just like any company, they have everyday costs like salaries, lab equipment, and office space.

Basically, they're using this money to push their drugs through the finish line and get them ready for market.

4. What are the main risks I should worry about?

Every investment has risks, and biotech companies like CTT Pharma have some unique ones. Here are the biggies:

• Drug Development Failure: This is the biggest risk. Most experimental drugs never make it to market. They might fail in clinical trials because they're not effective enough, cause bad side effects, or don't perform better than existing treatments. If their main drug fails, it would be a huge blow.
• Regulatory Approval: Even if a drug works well, it still needs to be approved by government bodies (like the FDA). This process is strict, lengthy, and there's no guarantee of approval.
• Competition: Other companies are also working on treatments for these diseases. A competitor might develop a better or cheaper drug, or get their drug approved first.
• Patent Protection: If their drugs are approved, CTT Pharma needs to protect their inventions with patents. If a patent is challenged or expires, other companies could make generic versions, cutting into CTT's profits.
• No Current Profits: Since they're in R&D, they likely aren't making a profit yet. This means they're burning through cash, and if their drugs don't succeed, they might need to raise more money later, which could dilute the value of your shares.
• Potential for Share Dilution/Selling Pressure: CTT Pharma has a deal (called an "Equity Line of Credit") with an investor named RH2 Equity Partners. This deal, signed on September 2, 2025, allows RH2 to buy up to $3 million worth of CTT Pharma shares over time. As part of this arrangement, CTT Pharma also entered into a Registration Rights Agreement with RH2. The catch is, CTT Pharma agreed to help RH2 register these shares so they can sell them on the open market later. When RH2 sells these shares, it could increase the total number of shares available to the public, which might make each existing share worth a little less (this is called 'dilution'). It could also put downward pressure on the stock price if RH2 sells a large number of shares at once.
• Company Status: CTT Pharma is classified as a 'smaller reporting company' and an 'emerging growth company.' This means they might have fewer reporting requirements than bigger, more established companies. While this can sometimes make it easier for them to operate, it also means there might be less public information available compared to a large pharmaceutical giant, which is something to keep in mind.

It's like betting on a racehorse that's still in training – it has potential, but there are many hurdles before it can win.

5. How do they compare to competitors I might know?

This is a bit tricky because CTT Pharma is focused on specific diseases and drug types. You might not know their direct competitors by name, but you've probably heard of big pharmaceutical companies like Pfizer, Johnson & Johnson, or AbbVie. These giants often have their own drugs for inflammatory diseases.

CTT Pharma is likely trying to differentiate itself by:

• Novel Mechanism: Their drug might work in a completely new way that could be more effective for certain patients.
• Targeted Approach: They might be focusing on a very specific group of patients where current treatments don't work well.
• Better Safety Profile: Their drug might have fewer or less severe side effects.

Compared to the big players, CTT Pharma is much smaller and has fewer drugs on the market (or none yet). This means they have higher risk but also potentially higher reward if their main drug hits it big. They're the underdog trying to innovate.

6. Who's running the company?

The leadership team is crucial, especially for a biotech company. You want experienced people who know how to navigate the complex world of drug development and regulatory approval.

• CEO (Chief Executive Officer): The CEO is Ryan Khouri. He's the main person steering the ship, and his experience will be key.
• Chief Scientific Officer (CSO): The Chief Scientific Officer (CSO) is another critical role, focusing on the scientific direction and drug discovery. You'd typically look for a brilliant researcher in this position.
• Board of Directors: Often includes a mix of scientific experts, business leaders, and financial gurus. Their collective experience helps guide the company.

Their main office is located in Tampa, FL, at 3853 Northdale Blvd #268, and you can reach them at (813) 606-0060. Look for a team with a strong track record in drug development, clinical trials, and commercialization. Their experience can make a big difference in overcoming the challenges ahead.

7. Where will it trade and under what symbol?

Once the IPO happens, you'll be able to buy and sell shares of CTT Pharma on a stock exchange.

• Exchange: They're planning to list on the NASDAQ Global Market. NASDAQ is a popular exchange for technology and biotech companies.
• Ticker Symbol: Their stock will trade under the symbol "CTTP". So, if you want to look them up, you'd search for CTTP on your brokerage app.

8. How many shares and what price range?

This is the "how much will it cost me?" part.

The company hasn't yet specified the exact number of shares they plan to offer or the initial estimated price range per share in their initial filing. These details are typically announced closer to the IPO date or in later amendments to their S-1 filing. Keep an eye out for updates, as this information will tell you the initial valuation and how much capital they aim to raise.

Remember, once it starts trading on the NASDAQ, the price will fluctuate based on supply and demand, just like any other stock.

Final thought: Investing in an IPO, especially for a biotech company, can be a roller coaster. There's potential for big gains if their drugs succeed, but also significant risk if they don't. Make sure you understand these points and consider if it fits with your personal investment goals and comfort with risk before diving in!