The drugmaker confirmed there’s a strong market for two of its treatments.
Shares of drugmaker Catalyst Pharmaceuticals (CPRX 5.25%) are up a little more than 8% as of midday on Thursday, down slightly from an intraday peak gain of nearly 13%. The company’s fourth-quarter results posted after Wednesday’s close were markedly better than expected.
Encouraging numbers from Catalyst
Catalyst Pharmaceuticals’ specialty is treating rare diseases, which inherently leaves it off of most investors’ radars.
Nevertheless, growth is relative, and this company’s relative growth right now is impressive to say the least. Last quarter’s top line of $141.8 million was 28% better than the year-ago comparison, handily topping analysts’ expectation of less than $133 million. The small company also turned a non-GAAP (adjusted) profit of $0.70 per share versus estimates of only $0.52. Its muscle-disease drug Firdapse led the way, although recently FDA-approved Agamree for the treatment of Duchenne muscular dystrophy (licensed to Catalyst by Santhera) drove the bulk of its absolute sales growth.
The pharmaceutical company expects to remain on this growth track, too, calling for 2025 revenue of between $545 million and $565 million. At the midpoint of these numbers that’s roughly 13% better than 2024’s top line, and more or less in line with analysts’ consensus of $558.1 million.
Still room to run
Not that this year’s expected revenue growth of 13% is anything to dismiss, but it’s hardly earth-shattering. A big gain like today’s is also a tough act for any stock to follow, further dialing back the current bullish argument.
Interested investors may still want to go ahead and take the plunge, however, for a couple of reasons.
First, even with today’s sizable romp it’s not as if this ticker’s raced out of reach. If anything it’s underperformed in light of the opportunity at hand, only up 50% for the past couple of years despite a key drug approval in the meantime. The underserved Duchenne muscular dystrophy market alone could eventually be worth billions. Meanwhile, Catalyst’s Firdapse is the first and only FDA-approved treatment for Lambert-Eaton myasthenic syndrome.
As for the second bullish argument, despite today’s jump, Catalyst shares are still 46% below analysts’ average price target of $32.50. And, although coverage of this company is modest, all eight of the analysts following Catalyst Pharmaceutical rate this stock a buy, with seven of them calling it a strong buy.
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