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Why Is Catalyst (CPRX) Down 0.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Catalyst due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Catalyst’s Q4 Earnings and Sales Beat Estimates
Catalyst 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, Fycompa CIII and nominal license and other revenues.
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.
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 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -34.04% due to these changes.
VGM Scores
At this time, Catalyst has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Catalyst has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Catalyst is part of the Zacks Medical - Drugs industry. Over the past month, Corcept Therapeutics (CORT - Free Report) , a stock from the same industry, has gained 7.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Corcept reported revenues of $135.41 million in the last reported quarter, representing a year-over-year change of +31.4%. EPS of $0.28 for the same period compares with $0.14 a year ago.
Corcept is expected to post earnings of $0.18 per share for the current quarter, representing a year-over-year change of +28.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.5%.
Corcept has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Catalyst (CPRX) Down 0.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Catalyst due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Catalyst’s Q4 Earnings and Sales Beat Estimates
Catalyst 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, Fycompa CIII and nominal license and other revenues.
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.
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 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -34.04% due to these changes.
VGM Scores
At this time, Catalyst has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Catalyst has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Catalyst is part of the Zacks Medical - Drugs industry. Over the past month, Corcept Therapeutics (CORT - Free Report) , a stock from the same industry, has gained 7.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
Corcept reported revenues of $135.41 million in the last reported quarter, representing a year-over-year change of +31.4%. EPS of $0.28 for the same period compares with $0.14 a year ago.
Corcept is expected to post earnings of $0.18 per share for the current quarter, representing a year-over-year change of +28.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.5%.
Corcept has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.