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Analyst Blog

Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) reported a loss of 5 cents per share in the third quarter of 2016, a penny narrower than the Zacks Consensus Estimate and in line with the year-ago figure.

Being a development-stage company, Catalyst Pharma does not have any approved product in its portfolio yet.

Quarter in Detail

Research and development (R&D) expenses were $2.5 million, down 18% from the year-ago quarter. General and administrative expenses were down 28.1% to $1.4 million.

Pipeline Update

Given that Catalyst Pharma does not have any revenue-generating product in its portfolio yet, investors are expected to focus on pipeline and regulatory updates. At present, Catalyst has two candidates under development – Firdapse and CPP-115.

In late Oct 2016, the company reached an agreement with the FDA for a Special Protocol Assessment for the protocol design, clinical endpoints, and statistical analysis of the upcoming second phase III study on its lead pipeline candidate, Firdapse, in the symptomatic treatment of Lambert-Eaton myasthenic syndrome.

We note that Firdapse was granted orphan drug status by the FDA for the treatment of myasthenia gravis in Sep 2016. Meanwhile, the company continues to enroll patients in a study on Firdapse for the treatment of congenital myasthenic syndromes and will support an investigator-sponsored study evaluating the candidate for the treatment of MuSK antibody-positive myasthenia gravis.

Meanwhile, Catalyst Pharma is developing CPP-115 for infantile spasms, epilepsy and other neurological conditions associated with reduced GABAergic signaling, like post-traumatic stress disorder and Tourette's disorder.

In addition, Catalyst Pharma is working on developing a generic version of Sabril (vigabatrin).

CATALYST PHARMA Price, Consensus and EPS Surprise


Zacks Rank & Other Stocks to Consider

Catalyst Pharma currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Infinity Pharmaceuticals, Inc. (INFI - Free Report) , Anika Therapeutics (ANIK - Free Report) and Exelixis, Inc. (EXEL - Free Report) . Anika sports a Zacks Rank #1 (Strong Buy), while both Infinity and Exelixis have Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.

Anika’s earnings estimates increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 33.14%. Its share price has gained 14.2% year to date.

Exelixis’ loss estimates narrowed from 71 cents to 54 cents for 2016 and from a loss of 16 cents to earnings of 4 cents for 2017 over the last 60 days. The company has posted a positive surprise thrice in the four trailing quarters with an average beat of 38.52%. Its share price has skyrocketed above 100% year to date.

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