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Catalyst's (CPRX) Q3 Earnings Beat Estimates, Revenues Miss

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Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) reported earnings of 11 cents per share in the third quarter of 2020 after excluding benefits from deferred tax assets, beating the Zacks Consensus Estimate of 9 cents. Meanwhile, the company reported a profit of 13 cents in the year-ago quarter.

The company’s revenues of $29.2 million missed the Zacks ConsensusEstimate of $31 million. Revenues in the year-ago quarter came in at $30.9 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 lost 11.7% in the year so far compared with the industry’s decline of 4.4%.


Quarter in Detail

Research and development (R&D) expenses of $3.7 million declined from $4.6 million reported in the year-ago quarter. The downside was attributable to decreases in medical and regulatory affairs and quality assurance expenses and expenses from the ongoing clinical studies evaluating Firdapse for the treatment of MuSK-MG, and the proof-of-concept study evaluating Firdapse for the treatment of SMA Type 3.

Selling, general and administrative (SG&A) expenses totaled $10 million, up from $8.1 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 employee cash stock-based compensation.

The company ended the quarter with $117.1 million in cash and investments, up from $89.5 million as of Dec 31, 2019.

Update on Firdapse

Apart from LEMS, Catalyst is working on developing Firdapse for other indications. In August 2020, the company reported top-line results from the phase III study on Firdapse in anti-MuSK antibody positive myasthenia gravis patients. In the study, the primary and 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.

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

 Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the biotech sector are Avenue Therapeutics Inc. (ATXI - Free Report) , BioLineRx Ltd, (BLRX - Free Report) and Concert Pharmaceuticals Inc. (CNCE - Free Report) . All stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Avenue’s loss per share estimates have narrowed from 63 cents to 47 cents for 2020 and increased from a profit 16 cents to 23 cents for 2021 in the past 60 days. Shares of the company have decreased 68.6% year to date.

BioLineRx’sloss per share estimates have narrowed from $1.95 to $1.67 for 2020 and from $1.44 to $1.36 for 2021 in the past 60 days. Shares of the company have increased 1.3% year to date.

Concert’s loss per share estimates have narrowed from $2.68 to $2.65 for 2020 and from $2.71 to $2.68 for 2021 in the past 60 days. Shares of the company have decreased 11.3% year to date.


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