Oppenheimer analyst Leland Gershell initiated coverage with a Buy rating on Catalyst Pharma (NASDAQ: CPRX) today and set a price target of $6. The company’s shares opened today at $3.25.
Gershell wrote:
“We are initiating coverage on CPRX with an Outperform rating and a $6 price target. We expect lead candidate Firdapse to begin generating revenue for CPRX by early 2019, and forecast peak 2025E sales of ~$475M. Following a surprise FDA setback in 2016, we believe CPRX has adequately fulfilled Firdapse’s registrational requirements in Lambert-Eaton myasthenic syndrome (LEMS), for which we see approval in late 2018. We expect label expansion to congenital myasthenic syndromes (CMS) in 2020, and clinical data reveals in other ultra-orphan conditions over the next 12-18 months could catalyze upward revisions to our model. We recommend risk-tolerant investors take advantage of CPRX shares at their current levels.”
According to TipRanks.com, Gershell has currently no stars on a ranking scale of 0-5 stars, with an average return of -30.8% and a 0.0% success rate. Gershell covers the Healthcare sector, focusing on stocks such as Avenue Therapeutics Inc, Evofem Biosciences Inc, and Urogen Pharma Ltd.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Catalyst Pharma with a $6 average price target.
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Based on Catalyst Pharma’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $5.7 million. In comparison, last year the company had a GAAP net loss of $3.88 million.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CPRX in relation to earlier this year.
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Catalyst Pharmaceuticals, Inc. is a biopharmaceutical company. It focuses on development and commercialization of prescription drugs targeting rare (orphan) neuromuscular and neurological diseases, including Lambert-Eaton Myasthenic Syndrome (LEMS), infantile spasms, and Tourette’s disorder.
