Catalyst Pharmaceuticals (CPRX) hosted a conference call yesterday to discuss its commercialization plan for the company’s newly FDA-approved LEMS drug, Firdapse. Catalyst announced Firdapse WAC pricing in LEMS of $375K per year — much higher than the Street’s projections. Additionally, the company outlined its underlying diligence and key success metrics for its commercialization strategy, including plans to transition existing patients to commercial drug through a free drug program and copay assistance.
H.C. Wainwright analyst Andrew Fein commented, “$375K annual cost of Firdapse for the treatment of Lambert-Eaton Myasthenic Syndrome (LEMS) is much higher than what we previously assumed ($180K at launch). While we are cognizant of the sensitivities around Firdapse’s cost, we think the company’s go-to-market plan puts several elements in place to minimize the potential pushback.”
Fein believes that while the total patient number is limited, the company does not need to penetrate a high percentage to be profitable. The company commented that there are about 10% of patients who are currently on therapies in the US, and the analyst thinks even assuming a modest penetration rate of the 3,000 LEMS patients, Catalyst can achieve north of $100 million revenues at peak.
Where Catalyst Stock Could Go Next
Given the company’s market cap of nearly $240 million, Fein believes there is still plenty of room for the stock to appreciate. Furthermore, Fein thinks that Firdapse go-to-market plan creates value for multiple stakeholders. All in all, the analyst reiterates a Buy rating on CPRX stock, while lifting the price target to $9.00 (from $6.00), which implies a potential upside of 285% from where the stock is currently trading. (To watch Fein’s track record, click here)
Fein is certainly not the first analyst with an optimistic outlook for Catalyst share price. A total of 6 analysts currently provide ratings; all 6 suggest Buy. With a return potential of 206%, the stock’s consensus target price stands at $7.17. (See CPRX’s price targets and analyst ratings on TipRanks)