Catalyst's (CPRX) Q3 Earnings & Revenues Surpass Estimates
Catalyst Pharmaceuticals, Inc. CPRX reported earnings of 20 cents per share for the third quarter of 2022, beating the Zacks Consensus Estimate of 19 cents. Earnings were also higher than our estimate of 19 cents. The company reported earnings of 10 cents in the year-ago quarter.
Adjusted earnings (adjusted for stock-based compensation, depreciation, amortization and tax provision) came in at 26 cents per share in the reported quarter compared with 14 cents a year ago.
Total revenues amounted to $57.2 million, beating the Zacks Consensus Estimate of $54 million. Sales rose 59.3% from the year-ago quarter’s $35.9 million. The top line primarily comprised significant sales of Firdapse (amifampridine), the company’s first approved drug for the treatment of Lambert-Eaton myasthenic syndrome (“LEMS”) and nominal license and other revenues.
Shares of Catalyst have rallied 114.3% year to date against the industry’s decline of 32.7%.
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Quarter in Detail
Firdapse generated sales worth $57.2 million in the third quarter, up 59.3% year over year, primarily driven by organic sales growth of Firdapse and the transition of Ruzurgi patients to Firdapse treatment after the dispute settlement with Jacobus Pharmaceuticals.
License and other revenues were nominal at $0.07 million in the reported quarter, down from $2.73 million in the prior-year quarter.
Research and development expenses were $8.3 million, down from the $4.5 million reported in the year-ago quarter.
Selling, general and administrative expenses totaled $14.2 million, up from $12.2 million reported in the year-ago quarter.
As of Sep 30, 2022, CPRX had cash, cash equivalents and investments worth $256.1 million compared with $220.8 million as of Jun 30, 2022.
2022 Guidance
Catalyst increased the revenue guidance it provided earlier this year.
The company now expects total revenues in the range of $205-$210 million, suggesting a 46-49% increase from 2021 levels. The company previously expected revenues in the range of $195-$205 million, suggesting a 38-45% increase from 2021 levels.
The Zacks Consensus Estimate for 2022 revenues currently stands at $205.05 million, while our estimate is pegged at $203.5 million.
The guidance assumes continued recovery in macroeconomic and healthcare activity throughout 2022 from the COVID pandemic.
Recent Updates
The company is focused on expanding the commercialization of Firdapse in the United States.
In September 2022, the FDA approved CPRX’s supplemental new drug application (“sNDA”) for Firdapse tablets in 10 mg dosage to include pediatric patients (six years and older) for treating LEMS.
Post the sNDA’s approval by the FDA, Firdapse is now a treatment option in the United States for all LEMS patients beyond six years of age. The label expansion is likely to boost drug sales in the days ahead.
LEMS is an extremely rare autoimmune disease characterized by muscle weakness of the limbs. Catalyst is presently well-positioned in the lead, with almost no competitors.
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). Some better-ranked stocks in the same sector are Alpine Immune Sciences, Inc. (ALPN), Larimar Therapeutics, Inc. (LRMR) and Can-Fite BioPharma Ltd. CANF, all sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for Alpine Immune Sciences narrowed 11.6% for 2022 and 16.4% for 2023 in the past 60 days.
Earnings of Alpine Immune Sciences missed estimates in each of the trailing four quarters. ALPN delivered a negative earnings surprise of 1,450.23% on average.
Loss per share estimates for Larimar Therapeutics narrowed 15.3% for 2022 and 46.7% for 2023 in the past 60 days.
Earnings of Larimar Therapeutics surpassed estimates in two of the trailing three quarters and missed on the other occasion. LRMR delivered a negative earnings surprise of 1.08% on average.
Loss per share estimates for Can-Fite BioPharma narrowed 2.6% for 2022 and 5.5% for 2023 in the past 60 days.
Earnings of Can-Fite BioPharma surpassed estimates in two of the trailing four quarters and missed on the other two occasions. CANF delivered a negative earnings surprise of 14.86% on average.
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