Catalyst (CPRX) Q2 Earnings Top Estimates, Revenues Rise Y/Y
Catalyst Pharmaceuticals, Inc. CPRX reported adjusted earnings of 16 cents per share for the second quarter of 2021, beating the Zacks Consensus Estimate of 8 cents. The company reported earnings of 11 cents in the year-ago quarter.
Total revenues of $36.4 million also beat the Zacks Consensus Estimate of $31 million and rose 23% from the year-ago quarter’s $29.6 million. The top line comprised sales of Firdapse (amifampridine), the company’s first approved drug for the treatment of Lambert-Eaton myasthenic syndrome (LEMS), and license and other revenues.
Shares of Catalyst were up 2.8% in after-hours trading following its announcement of better-than-expected earnings results. The stock has rallied 72.4% in the year so far against the industry’s decrease of 11.3%.
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Quarter in Detail
Firdapse generated sales worth $33.6 million in the second quarter, up 14% year over year. License and other revenues were $2.7 million in the reported quarter.
Research and development (R&D) expenses of $4.5 million increased from $4.1 million reported in the year-ago quarter.
Selling, general and administrative (SG&A) expenses totaled $11.5 million, up from $10.8 million reported in the year-ago quarter.
As of Jun 30, 2021, Catalyst had cash, cash equivalents and investments worth $155.3 million compared with $143.3 million as of Mar 31, 2021.
Update on Firdapse
Apart from LEMS, Catalyst is working on developing Firdapse for other indications. A proof-of-concept study on Firdapse to treat hereditary neuropathy with liability to pressure palsies is scheduled to start shortly.
Firdapse is currently being evaluated in various studies for the treatment of MuSK-MG and myasthenia gravis. Development of the long-acting formulation, Firdapse, also remains on track. The company is focused on expanding the commercialization of Firdapse in the United States.
A potential approval of the drug for any of the given indications will drive revenues for the company.
In June 2021, Catalyst entered into an exclusive license and supply agreement with DyDo Pharma to develop/commercialize Firdapse for the treatment of LEMS in Japan. The drug already received an Orphan Drug designation in the country for the said indication.
Catalyst Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Catalyst Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Catalyst Pharmaceuticals, Inc. Quote
Zacks Rank & Stocks to Consider
Catalyst currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include Galmed Pharmaceuticals Ltd. GLMD, USANA Health Sciences, Inc. USNA and Larimar Therapeutics, Inc. LRMR, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Galmed Pharmaceuticals’ loss per share estimates have narrowed 3.2% for 2021 and 4.9% for 2022 over the past 60 days.
USANA Health Sciences’ earnings estimates have been revised 0.2% upward for 2021 and 2.9% for 2022 over the past 60 days. The stock has increased 22.3% year to date.
Larimar Therapeutics’ loss per share estimates have narrowed 16.9% for 2021 and 3.5% for 2022 over the past 60 days.
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