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Catalyst (CPRX) Q4 Earnings & Sales Beat Estimates, Stock Up
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Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) reported adjusted diluted earnings of 53 cents per share for the fourth quarter of 2023, beating the Zacks Consensus Estimate of 48 cents. The company reported adjusted diluted earnings of 31 cents in the year-ago quarter.
Total revenues amounted to $110.6 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $106 million. Total product revenues surged 82% from the year-ago quarter’s $60.8 million. The top line primarily comprised product sales of Firdapse, the first approved drug for the treatment of Lambert-Eaton myasthenic syndrome (LEMS), Fycompa (perampanel) CIII and nominal license and other revenues.
Catalyst’s stock is gaining in the pre-market hours on Feb 29, driven by the better-than-expected fourth-quarter results. In the past year, shares of the company have lost 5.8% against the industry’s 3.6% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Firdapse generated sales worth $69.8 million in the fourth quarter, up 15% year over year, beating our estimate of $68.8 million. The surge was primarily driven by the organic sales growth of Firdapse. The drug has been witnessing strong demand and increasing prescription rates from both autoimmune and small cell lung cancer LEMS patients, as well as continued diagnosis of new LEMS patients.
Catalyst also started recording sales of its newest epilepsy asset, Fycompa, from the first quarter of 2023. In January 2023, CPRX acquired the U.S. rights for Fycompa (perampanel) CIII from Eisai Co., Ltd. This acquisition diversified the company’s portfolio with the addition of a commercial-stage epilepsy asset.
Fycompa generated robust net product revenues of $39.3 million in fourth-quarter 2023, which surpassed our estimate of $36.4 million. The reported figure witnessed an 8% sequential growth.
License and other revenues in the reported quarter were $1.5 million, up significantly year over year.
The cost of sales was $15.8 million in the fourth quarter of 2023, up about 41% year over year.
Research and development (R&D) expenses were $2 million in the reported quarter, down 52% year over year.
Selling, general and administrative (SG&A) expenses totaled $42 million, up 198% from $14.1 million reported in the year-ago quarter. This uptick in expenses is due to commercial and marketing activities for Fycompaandpre-launch investments in preparation for the launch of Agamree in the first quarter of 2024 in the United States.
As of Dec 31, 2023, Catalyst had cash, cash equivalents and investments worth $137.6 million compared with $121 million as of Sep 30, 2023.
Full-Year Results
For 2023, CPRX reported total revenues of $398.2 million, up 86% year over year, beating the Zacks Consensus Estimate of $393.6 million as well as our estimate of $393 million.
The company reported adjusted diluted earnings of $1.96 per share for 2023, which also surpassed the Zacks Consensus Estimate of $1.91 as well as our estimate of $1.94.
2024 Financial Guidance
For 2024, Catalyst expects total revenues in the range of $455-$475 million, boosted by the continued growth of Firdapse and additional net product revenues from Agamree.
Firdapse revenues in 2024 are expected between $295 million and $310 million, Agamree revenues in the range of $25-$30 million and Fycompa revenues in the $130-$135 million band.
The company expects R&D costs to increase as it is planning to initiate a long-term safety and quality of life study on Agamree.
SG&A expenses are also projected to increase significantly in 2024, due to the launch of Agamree and the cumulative commercial and marketing activities to support three commercial products compared with two in 2023.
Catalyst also expects its effective tax rate to increase slightly in 2024.
Catalyst Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
We remind the investors that CPRX acquired exclusive rights to manufacture and supply Agamree from Santhera Pharmaceuticals through a licensing agreement that was closed at the beginning of the third quarter of 2023.
In October 2023, the FDA approved Agamree for treating Duchenne Muscular Dystrophy in patients aged two years and older. The drug is on track for its U.S. commercial launch in the first quarter of 2024 by Catalyst’s neuromuscular franchise teams.
During the reported quarter, the FDA also accepted CPRX’s label-expanding application seeking to increase the approved Firdapse maximum daily dosage from 80mg to 100mg for the treatment of LEMS. A decision from the regulatory body is expected on Jun 4, 2024.
Furthermore, the company also reported strengthening Firdapse intellectual property estate with two new U.S. patents issued covering methods of treating LEMS with Firdapse under fasting and fed conditions of dosing during the fourth quarter.
The company also completed a $150 million common stock offering in January 2024with net proceeds of approximately $140.1 million. Catalyst intends to use the cash to fund the potential acquisition of new product candidates and for general corporate purposes.
Zacks Rank and Stocks to Consider
Catalyst currently carries a Zacks Rank #3 (Hold).
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 69 cents to 71 cents. Over the past year, shares of PBYI have surged 64.2%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering an average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past year, shares of ADMA have jumped 51%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 85%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet’s 2024 loss per share has narrowed from $2.29 to $1.81. In the past year, shares of ACET have plunged 69.6%.
ACET’s earnings beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 8.36%.
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Catalyst (CPRX) Q4 Earnings & Sales Beat Estimates, Stock Up
Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) reported adjusted diluted earnings of 53 cents per share for the fourth quarter of 2023, beating the Zacks Consensus Estimate of 48 cents. The company reported adjusted diluted earnings of 31 cents in the year-ago quarter.
Total revenues amounted to $110.6 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $106 million. Total product revenues surged 82% from the year-ago quarter’s $60.8 million. The top line primarily comprised product sales of Firdapse, the first approved drug for the treatment of Lambert-Eaton myasthenic syndrome (LEMS), Fycompa (perampanel) CIII and nominal license and other revenues.
Catalyst’s stock is gaining in the pre-market hours on Feb 29, driven by the better-than-expected fourth-quarter results. In the past year, shares of the company have lost 5.8% against the industry’s 3.6% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Firdapse generated sales worth $69.8 million in the fourth quarter, up 15% year over year, beating our estimate of $68.8 million. The surge was primarily driven by the organic sales growth of Firdapse. The drug has been witnessing strong demand and increasing prescription rates from both autoimmune and small cell lung cancer LEMS patients, as well as continued diagnosis of new LEMS patients.
Catalyst also started recording sales of its newest epilepsy asset, Fycompa, from the first quarter of 2023. In January 2023, CPRX acquired the U.S. rights for Fycompa (perampanel) CIII from Eisai Co., Ltd. This acquisition diversified the company’s portfolio with the addition of a commercial-stage epilepsy asset.
Fycompa generated robust net product revenues of $39.3 million in fourth-quarter 2023, which surpassed our estimate of $36.4 million. The reported figure witnessed an 8% sequential growth.
License and other revenues in the reported quarter were $1.5 million, up significantly year over year.
The cost of sales was $15.8 million in the fourth quarter of 2023, up about 41% year over year.
Research and development (R&D) expenses were $2 million in the reported quarter, down 52% year over year.
Selling, general and administrative (SG&A) expenses totaled $42 million, up 198% from $14.1 million reported in the year-ago quarter. This uptick in expenses is due to commercial and marketing activities for Fycompaandpre-launch investments in preparation for the launch of Agamree in the first quarter of 2024 in the United States.
As of Dec 31, 2023, Catalyst had cash, cash equivalents and investments worth $137.6 million compared with $121 million as of Sep 30, 2023.
Full-Year Results
For 2023, CPRX reported total revenues of $398.2 million, up 86% year over year, beating the Zacks Consensus Estimate of $393.6 million as well as our estimate of $393 million.
The company reported adjusted diluted earnings of $1.96 per share for 2023, which also surpassed the Zacks Consensus Estimate of $1.91 as well as our estimate of $1.94.
2024 Financial Guidance
For 2024, Catalyst expects total revenues in the range of $455-$475 million, boosted by the continued growth of Firdapse and additional net product revenues from Agamree.
Firdapse revenues in 2024 are expected between $295 million and $310 million, Agamree revenues in the range of $25-$30 million and Fycompa revenues in the $130-$135 million band.
The company expects R&D costs to increase as it is planning to initiate a long-term safety and quality of life study on Agamree.
SG&A expenses are also projected to increase significantly in 2024, due to the launch of Agamree and the cumulative commercial and marketing activities to support three commercial products compared with two in 2023.
Catalyst also expects its effective tax rate to increase slightly in 2024.
Catalyst Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Catalyst Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Catalyst Pharmaceuticals, Inc. Quote
Recent Updates
We remind the investors that CPRX acquired exclusive rights to manufacture and supply Agamree from Santhera Pharmaceuticals through a licensing agreement that was closed at the beginning of the third quarter of 2023.
In October 2023, the FDA approved Agamree for treating Duchenne Muscular Dystrophy in patients aged two years and older. The drug is on track for its U.S. commercial launch in the first quarter of 2024 by Catalyst’s neuromuscular franchise teams.
During the reported quarter, the FDA also accepted CPRX’s label-expanding application seeking to increase the approved Firdapse maximum daily dosage from 80mg to 100mg for the treatment of LEMS. A decision from the regulatory body is expected on Jun 4, 2024.
Furthermore, the company also reported strengthening Firdapse intellectual property estate with two new U.S. patents issued covering methods of treating LEMS with Firdapse under fasting and fed conditions of dosing during the fourth quarter.
The company also completed a $150 million common stock offering in January 2024with net proceeds of approximately $140.1 million. Catalyst intends to use the cash to fund the potential acquisition of new product candidates and for general corporate purposes.
Zacks Rank and Stocks to Consider
Catalyst currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the drug/biotech industry are Puma Biotechnology, Inc. (PBYI - Free Report) , ADMA Biologics (ADMA - Free Report) and Adicet Bio, Inc. (ACET - Free Report) . While PBYI and ADMA sport a Zacks Rank #1 (Strong Buy) each, ACET carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has increased from 69 cents to 71 cents. Over the past year, shares of PBYI have surged 64.2%.
PBYI beat estimates in three of the last four quarters while missing on one occasion, delivering an average earnings surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has remained constant at 2 cents. The consensus estimate for ADMA Biologics’ 2024 EPS is pegged at 22 cents. Over the past year, shares of ADMA have jumped 51%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 85%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet’s 2024 loss per share has narrowed from $2.29 to $1.81. In the past year, shares of ACET have plunged 69.6%.
ACET’s earnings beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 8.36%.