There is a little more to the story (shocking!) when you look at Jacobus Pharma's history insofar as their products in the market. Jacobus sells a TB drug named Paser....this is a second line TB treatment and is a generic compound created in the 1940s for IBD. Paser is also one of the reasons Jacobus received a warning letter from the FDA for substandard GMPs and several later FDA 483s. In fact, these same FDA concerns touch on the efficacy and quality consistency issues that Pat outlined in his response regarding why Catalyst is seeking FDA clinical approval for 3,4 DAP as a phosphate salt. Incredibly, while there are a ton of cheap TB treatments, Jacobus sells their 70 year old generic drug for an annual cost of almost $3000 year. Is this the same "profiteering" that Jacobus is accusing Catalyst of in their Firdapse program? Sounds more like the pot calling the kettle black.
BigRed, Thank you for a nice post! I also encourage people to read investor hub posts. Illuminating! Check Jacobus on YouTube. They look like a Mom and Pop with a home for an office. Considering the expense and expertise required to start a Phase 3 trial and compete it successfully, it is hard to believe, that they have the wherewithal to secure FDA approval. Anyway, CPRX will definitely beat them to a an approval. Folks, Firdapse is only one drug in their pipeline. Most importantly, Don't forget the Dr, Silverman Factor! Good Luck!
I can't prove it yet but I am going to try. My take is as bigedwf has said this is not just as it appears on the surface or in the article about Jacobus Pharma. They have to be getting something out of this. They are working with mainly research hospitals. So, either they are getting financial help from these institutions or are assisting in research that will benefit them in the long run. Not saying they didn't star out giving the drug away. Just saying that I highly doubt that they have been doing it for 20 years for free. Does anyone know if Jacobus is a compounding pharmacy? If so, if should also send up a red flag. Haven't we learned from recent compounding pharmas that have caused X deaths because of processing mistakes. Making these drugs in small batches in fairly uncontrolled facilities has lead to some VERY bad situations.I am not saying Jacobus has done anything wrong with processing.
In addition, what was left out of the Street article is CPRX is looking at Firdapse for more than just LEMS. CPRX is not investing all the millions of dollars they have to just be able to go after the approx. 3,000 LEMS patients in the US. There are other indications that CPRX is exploring for Firdapse. So, for the Street article to say that CPRX is doing this to take advantage of LEMS patients financially is just plain WRONG!!!
The article was mostly written to tank the price to let people get into the stock on the cheap. Within a couple weeks someone will write a glowing article on CPRX that will send the stock price north again after the articles author's friends have loaded up on shares at this level, in my opinion.