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Catalyst Pharmaceuticals (CPRX) Down 7.4% Since Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) . Shares have lost about 7.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is CPRX 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 catalysts.
Catalyst Posts In-Line Q4 Loss, Pipeline in Progress
Catalyst reported a loss of 6 cents per share in the fourth quarter of 2017, on par with the Zacks Consensus Estimate. The reported loss was wider than the year-ago loss of 5 cents.
Being a development-stage company, Catalyst Pharma does not have any approved product in its portfolio yet. Hence, the company did not generate any revenues in the quarter.
Quarter in Detail
Research and development (R&D) expenses were $3.4 million, up 20.7% from the year-ago quarter. The costs included expenses related to ongoing studies and trials for Firdapse, costs associated with the Firdapse Expanded Access Program and expenses pertaining to the CPP-115 and generic Sabril programs.
General and administrative expenses totaled $2.1 million, up 41% from the year-ago quarter.
Pipeline Update
Currently, Catalyst has two candidates under development — Firdapse and CPP-115.
The company made significant progress with respect to the second phase III study evaluating Firdapse for the treatment of Lambert-Eaton Myasthenic Syndrome. Catalyst also successfully completed the required abuse liability studies that confirmed that Firdapse does not exhibit abuse potential.
The company also expects to enroll patients in its phase III study for MuSK antibody positive myasthenia gravis in the first half of 2018 and the proof-of-concept study for spinal muscular atrophy Type 3 in the second quarter of 2018.
Meanwhile, the company is on track to resubmit its new drug application for Firdapse in the first quarter of 2018 and is actively engaged in pre-commercialization activities for a potential launch of the same.
The company expects to complete enrollment in the phase III CMS (CMS-001) study before 2018-end and report top-line results it in the first quarter of 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter. In the past month, the consensus estimate has shifted by 14.3% due to these changes.
Catalyst Pharmaceuticals, Inc. Price and Consensus
At this time, CPRX has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision looks promising. Notably, CPRX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Catalyst Pharmaceuticals (CPRX) Down 7.4% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) . Shares have lost about 7.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is CPRX 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 catalysts.
Catalyst Posts In-Line Q4 Loss, Pipeline in Progress
Catalyst reported a loss of 6 cents per share in the fourth quarter of 2017, on par with the Zacks Consensus Estimate. The reported loss was wider than the year-ago loss of 5 cents.
Being a development-stage company, Catalyst Pharma does not have any approved product in its portfolio yet. Hence, the company did not generate any revenues in the quarter.
Quarter in Detail
Research and development (R&D) expenses were $3.4 million, up 20.7% from the year-ago quarter. The costs included expenses related to ongoing studies and trials for Firdapse, costs associated with the Firdapse Expanded Access Program and expenses pertaining to the CPP-115 and generic Sabril programs.
General and administrative expenses totaled $2.1 million, up 41% from the year-ago quarter.
Pipeline Update
Currently, Catalyst has two candidates under development — Firdapse and CPP-115.
The company made significant progress with respect to the second phase III study evaluating Firdapse for the treatment of Lambert-Eaton Myasthenic Syndrome. Catalyst also successfully completed the required abuse liability studies that confirmed that Firdapse does not exhibit abuse potential.
The company also expects to enroll patients in its phase III study for MuSK antibody positive myasthenia gravis in the first half of 2018 and the proof-of-concept study for spinal muscular atrophy Type 3 in the second quarter of 2018.
Meanwhile, the company is on track to resubmit its new drug application for Firdapse in the first quarter of 2018 and is actively engaged in pre-commercialization activities for a potential launch of the same.
The company expects to complete enrollment in the phase III CMS (CMS-001) study before 2018-end and report top-line results it in the first quarter of 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter. In the past month, the consensus estimate has shifted by 14.3% due to these changes.
Catalyst Pharmaceuticals, Inc. Price and Consensus
Catalyst Pharmaceuticals, Inc. Price and Consensus | Catalyst Pharmaceuticals, Inc. Quote
VGM Scores
At this time, CPRX has a subpar Growth Score of D, though it is lagging a bit on the momentum front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision looks promising. Notably, CPRX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.