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Catalyst's (CPRX) Q2 Earnings & Revenues Beat Estimates

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Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) reported earnings of 9 cents per share in the second quarter of 2020, beating the Zacks Consensus Estimate of 8 cents. Meanwhile, the company reported a profit of 10 cents in the year-ago quarter.

The company’s revenues of $29.6 million beat the Zacks Consensus Estimate of $29 million. Revenues in the year-ago quarter came in at $28.8 million. Revenues came entirely from sales of Firdapse, the company’s first-approved drug for the treatment of Lambert-Eaton myasthenic syndrome (LEMS).

Shares of Catalyst have gained 13.7% in the year so far against the industry’s decline of 5%.

Quarter in Detail

Research and development (R&D) expenses of $4.3 million declinedfrom $4.6 million reported in the year-ago quarter. The expenses were attributable to increases in headcount, medical and regulatory affairs, quality assurance expenses, and expenses from the ongoing studies evaluating Firdapse for the treatment of MuSK-MG and theproof-of-concept trial evaluating the samefor the treatment of spinal muscular atrophy (SMA) type 3.

Selling, general and administrative (SG&A) expenses totaled $10.8 million, up from $9 million reported in the year-ago quarter. The increase was led by additional costs from the expansion of the sales force and contraction with a rare-disease, experienced inside sales agency, and an increase in non-cash stock-based compensation.

The company ended the quarter with $115.1 million in cash and investments, up from $89.5 million as ofDec 31, 2019.

Update on Firdapse

Apart from LEMS, Catalyst is working on developing Firdapse for additional indications. The company reported top-line results from the phase III study onFirdapse in anti-MuSK antibody positive myasthenia gravis patients. In the study, the primary and the secondary endpoints did not achieve statistical significance. The company plans to complete the full analysis of data and findings and meet its neuromuscular advisors to decide thepath forward for the MuSK-MG indication.

Firdapse is also being evaluated in a proof-of-concept study for the treatment of spinal muscular atrophy (SMA) type 3 patients. Top-line results from this study are expected before the end of 2020.Investigator studies for two additional neuromuscular indications are expected to commence later in 2020.

A potential approval of the drug for any of the given indications will further drive revenues for the company.


Catalyst Pharmaceuticals, Inc. Price, Consensus and EPS Surprise


Catalyst Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Catalyst Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Catalyst Pharmaceuticals, Inc. Quote

Zacks Rank & Stocks to Consider

Catalyst currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the sector include BioLineRx Ltd. (BLRX - Free Report) , BioSpecifics Technologies Corp. and AcelRx Pharmaceuticals, Inc. (ACRX - Free Report) . All these stocks carrya Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BioLineRx’s loss per share estimates have narrowed to $1.97 from $2.88 for 2021 in the past 60 days.

BioSpecifics’earnings per share estimates have increased to $5.75 from $5.45 for 2021 in the past 60 days.

AcelRx’s loss per share estimates have narrowed to 52 cents from 59  cents for 2020 in the past 60 days.

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