Catalyst (CPRX) Q2 Earnings & Sales Top, 2023 Outlook Raised
Shares of Catalyst Pharmaceuticals, Inc. CPRX climbed 6.4% on Thursday after the company reported its second-quarter 2023 earnings results on Wednesday, after market close. The stock, however, lost 2.1% during the after-market hours on Thursday.
CPRX reported earnings of 33 cents per share for the second quarter of 2023, beating the Zacks Consensus Estimate of 25 cents. The company reported earnings of 20 cents in the year-ago quarter.
Adjusted earnings (adjusted for stock-based compensation, depreciation, amortization and tax provision) came in at 53 cents per share in the quarter compared with 28 cents a year ago.
Total revenues amounted to $100 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $93 million. Total product revenues rose 87.5% from the year-ago quarter’s $53 million. The top line primarily comprised product sales of Firdapse, the first approved drug for the treatment of Lambert-Eaton myasthenic syndrome (LEMS), Fycompa (perampanel) CIII and nominal license and other revenues.
Year to date, shares of Catalyst have plunged 19.3% compared with the industry’s fall of 2%.
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Quarter in Detail
Firdapse generated sales worth $64.9 million in the second quarter, up 22.3% year over year, beating our estimate of $62.7 million. The surge was primarily driven by the organic sales growth of Firdapse. The drug has been witnessing strong demand and increasing prescription rates from both autoimmune and small cell lung cancer LEMS patients, as well as continued diagnosis of new LEMS patients.
Catalyst also started recording sales of its newest epilepsy asset, Fycompa, starting the first quarter of 2023. In January, CPRX acquired the U.S. rights for Fycompa (perampanel) CIII from Eisai Co., Ltd. This acquisition diversified the company’s portfolio with the addition of a commercial-stage epilepsy asset.
Fycompa generated robust net product revenues of $34.6 million in second-quarter 2023, which surpassed our estimate of $30.7 million. The second quarter of 2023 marked the first full-quarter performance of Fycompa CIII.
License and other revenues were nominal at $0.11 million in the reported quarter, up 64% year over year.
The cost of sales was $12 million in the second quarter of 2023, up about 58% year over year, comprising primarily royalties.
Research and development expenses were $3.96 million in the reported quarter, being relatively flat year over year.
Selling, general and administrative expenses totaled $28.4 million, up 120% from $12.9 million reported in the year-ago quarter. This uptick in expenses is due to commercial and marketing activities related to the launch of Fycompa in the United States in the reported quarter.
As of Jun 30, 2023, CPRX had cash, cash equivalents and investments worth $178.8 million compared with $148.2 million as of Mar 31, 2023.
2023 Guidance Raised
Catalyst raised its full-year 2023 total revenue guidance to the range of $380-$390 million from $375-$385 million, marking a 77-82% (previously 75-80%) increase in total revenues from 2022. This guidance also includes the revenues generated from the sales of Fycompa CIII, which is expected to be $130 million for the 11 months ending December 2023.
Recent Updates
Also during the second quarter, CPRX announced entering into a definitive licensing agreement with Santhera Pharmaceuticals Holding, which will grant Catalyst exclusive rights to manufacture and supply Santhera’s vamorolone in North America. Vamorolone is Santhera’s investigational dissociative steroid, which is currently under FDA review for the treatment of Duchenne muscular dystrophy.
The licensing agreement will add a promising drug candidate to Catalysts’ diversifying rare neuroscience product portfolio. A decision from the FDA is expected on Oct 26, 2023. The company anticipates the launch of the drug in first-quarter 2024, subject to approval.
CPRX also reported submitting a supplemental new drug application to increase the maximum daily dosage of Firdapse to 100mg for the treatment of LEMS. The review of the application is expected to be completed in first-quarter 2024.
Catalyst Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Catalyst Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Catalyst Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Catalyst currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall medical sector are J&J JNJ, ADC Therapeutics ADCT and ADMA Biologics, Inc. ADMA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for J&J’s 2023 earnings per share has increased from $10.67 to $10.75. During the same period, the estimate for JNJ’s 2024 earnings per share has increased from $11.01 to $11.29. Year to date, shares of JNJ have lost 2%.
JNJ beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 5.58%.
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics’ 2023 loss per share has narrowed from $2.77 to $2.70. During the same period, the estimate for ADC Therapeutics’ 2024 loss per share narrowed from $2.56 to $2.48. Year to date, shares of ADCT have plunged 60.9%.
ADCT beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative earnings surprise of 3.25%.
In the past 90 days, the Zacks Consensus Estimate for ADMA Biologics’ 2023 loss per share has narrowed from 9 cents to 8 cents. The consensus estimate for 2024 earnings is currently pegged at 8 cents per share. Year to date, shares of ADMA have gained 4.7%.
ADMA beat estimates in three of the trailing four quarters, matching estimates on one occasion, delivering an average earnings surprise of 13.57%.
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