Catalyst Pharma 4Q Revenue, Earnings Outperform Estimates

Catalyst Pharmaceuticals delivered a better-than-expected 4Q performance, driven by higher sales for Firdapse, which is used to treat Lambert-Eaton myasthenic syndrome (LEMS) patients. Shares of the commercial stage biopharmaceutical company rose about 1.5% in the extended trading session on Monday.

Catalyst Pharma’s (CPRX) revenue, comprised primarily of Firdapse sales, increased by $0.9 million year-over-year to hit $31 million, topping analysts’ estimates of $30.35 million.

The company posted adjusted earnings of $0.11 per share, up 57% year-over-year, with the figure exceeding analysts’ expectations of $0.09 per share.

The company’s Chairman and CEO Patrick J. McEnany said, “We are extremely pleased with our continued commercial execution of the Firdapse launch during 2020. Despite the challenges of dealing with COVID-19, we were able to grow our revenues 16% during 2020 over 2019. As the country and physician practices are starting to re-open as we enter a post pandemic period, we believe that we are well positioned to accelerate our rate of growth with new patient starts and revenue as the year progresses.”

The company remains focused on acquiring or in-licensing innovative, technology platforms and early stage programs in therapeutic areas different from neuromuscular diseases. (See Catalyst Pharma stock analysis on TipRanks)

Recently, H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on the stock with a price target of $9 (128.4% upside potential).

Fein commented, “We continue to believe promising days lie ahead for Firdapse in the treatment of adult Lambert-Eaton myasthenic syndrome (LEMS) patients. Management’s receptiveness to both the acquisition and in-licensing of therapeutic programs in rare diseases outside the neurological or neuromuscular space can directly add not only greater diversity to the pipeline, but also provide the potential for greater long term growth and value creation.”

The other analyst covering the stock, Piper Sandler’s Joseph Catanzaro, also has a Buy rating on the stock with a price target of $5.50. The two ratings add up to a Moderate Buy consensus rating alongside an average analyst price target of $7.25, implying an 84% potential upside from current levels. Shares have seen a 32.8% increase over the past year.

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