Catalyst (CPRX) Posts In-Line Q1 Loss, Pipeline Progresses

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) reported a loss of 6 cents per share in the first quarter of 2018, in line with the Zacks Consensus Estimate and with the year-ago quarter.

Being a development-stage company, Catalyst Pharma does not have any approved product in its portfolio. Hence, the company did not generate any revenues in the quarter.

So far this year, Catalyst Pharma’s shares have lost 29.9% compared with the industry’s fall of 2%.

Quarter in Detail

Research and development (R&D) expenses were $3.3 million, up 15.8% from the year-ago quarter. The costs included expenses related to consulting charges as the company was preparing to submit its new drug application (“NDA”) for Firdapse for the treatment of Lambert-Eaton Myasthenic Syndrome (“LEMS”) in March 2018.

General and administrative expenses totaled $2.7 million, up 43.3% from the year-ago quarter. The increase in expenses is attributable to higher pre-commercialization expenses.

Pipeline Update

Currently, Catalyst Pharma has two candidates under development — Firdapse and CPP-115.

The company resubmitted its NDA to the FDA for Firdapse for the treatment of LEMS. The company had a positive Type C meeting with the FDA during the first quarter and remains optimistic that the NDA resubmission for Firdapse includes all that is required to be accepted for review by the FDA. The company expects the FDA’s decision regarding acceptance of the NDA for Firdapse in the second quarter of 2018.

The company also enrolled the first patient in Firdapse’s phase III study for MuSK antibody positive myasthenia gravis during the first quarter. The company is engaged in pre-commercialization activities for a potential launch of Firdapse.

The company expects to complete enrollment in the phase III CMS (CMS-001) study before 2018-end and report top-line results in the first quarter of 2019.

Zacks Rank & Stocks to Consider

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

A few better-ranked stocks from the same space worth considering are Ligand Pharmaceuticals (NASDAQ:LGND) , Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) and Catabasis Pharmaceuticals (NASDAQ:CATB) . Whlle Ligand sports a Zacks Rank #1 (Strong Buy), Enanta and Catabasis carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ligand’s earnings per share estimates have moved up from $4.20 to $4.43 for 2018 over the last 60 days. The company delivered a positive earnings surprise in all of the trailing four quarters, with an average beat of 31.79%. The company’s shares have rallied 23.4% year to date.

Enanta’searnings per share estimates have moved up from 86 cents to $2.48 for 2018 over the last 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 372.02%. The stock has rallied 68.9% so far this year.

Catabasis’ loss estimates narrowed from $1.09 to 90 cents for 2018 and from $1.76 to $1.43 for 2019, in the last 60 days. The company came up with a positive earnings surprise in all the preceding four quarters, with an average beat of 14.56%. The stock has rallied 20.2% so far this year.

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