Catalyst Pharmaceuticals CPRX reported adjusted earnings of 57 cents per share for the third quarter of 2024, beating the Zacks Consensus Estimate of 49 cents. The company had incurred an adjusted loss of 24 cents in the year-ago quarter.

Total revenues, the majority of which comprised product revenues, amounted to $128.7 million in the reported quarter, representing growth of 25.3% year over year. The recorded figure also surpassed the Zacks Consensus Estimate of $123 million.

Catalyst’s top line primarily comprised revenues from the sale of Firdapse, the first approved drug for the treatment of Lambert-Eaton myasthenic syndrome (LEMS) and epilepsy drug, Fycompa (perampanel) CIII. Revenues generated from the sale of the newly launched muscle disease drug, Agamree (vamorolone), also contributed to the top line.

The stock gained 7% in the after-market hours on Nov. 6 as the investors were impressed by the better-than-expected third-quarter results.

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CPRX’s Q3 Results in Detail

Firdapse generated sales worth $79.3 million in the reported quarter, up 19.7% year over year. The reported figure beat the Zacks Consensus Estimate of $77.6 million and our estimate of $77.2 million, driven by the organic sales growth of Firdapse. The drug has been witnessing strong demand and increasing prescription rates from LEMS patients, as well as continued diagnosis of new LEMS patients.

Catalyst started recording sales of Fycompa in the first quarter of 2023. In 2023, CPRX acquired the U.S. rights for Fycompa (perampanel) CIII from Eisai Co., Ltd. This acquisition diversified the company’s portfolio by adding a commercial-stage epilepsy asset.

Fycompa generated net product revenues of $32.1 million in third-quarter 2024, which missed the Zacks Consensus Estimate of $34.3 million as well as our model estimate of $35 million. Fycompa sales recorded a year-over-year decline of 11.9%.

Year to date, shares of CPRX have jumped 35.1% against the industry’s 3.6% decline.

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In the third quarter of 2023, Catalyst acquired exclusive rights to manufacture and supply Agamree from Santhera Pharmaceuticals through a licensing agreement. In late 2023, the FDA approved Agamree for treating Duchenne Muscular Dystrophy in patients aged two years and older, which gave Catalyst a third approved product. The drug was commercially launched in the United States in the middle of March 2024.

In the second full quarter of commercialization since launch, Agamree generated revenues worth $15 million, up 72% sequentially. The reported figure beat the Zacks Consensus Estimate of $11 million and our estimate of $10.4 million.

Research and development (R&D) expenses were $3.3 million in the reported quarter, down 96.1% year over year. This is due to the inclusion of a one-time expense of $81.5 million in the year-ago quarter.

Selling, general and administrative expenses totaled $45.9 million, up 36.7% from the year-ago quarter figure. This uptick in costs is primarily due to the launch of Agamree and the cumulative commercial and marketing activities to support three commercial products compared with two in 2023.

As of Sept. 30, 2024, Catalyst had cash, cash equivalents and investments worth $442.3 million compared with $375.7 million as of June 30, 2024.

CPRX Raises 2024 Financial Guidance

Catalyst now expects total revenues in the range of $475-$485 million compared with the previous guidance of $455-$475 million for the full year, boosted by the continued growth of Firdapse, Fycompa and additional net product revenues from Agamree. The projected range includes the $2.1 million milestone payment received from DyDo after it secured the approval of Firdapse in Japan for LEMS.

For 2024, the company now projects its Firdapse revenues in the band of $300-$310 million compared with the previously guided range of $295-$310 million. Fycompa revenues continue to be expected in the $130-$135 million band. Catalyst expects Agamree revenues to be in the band of $40-$45 million, up from the previously guided range of $35-$40 million.

Additionally, Catalyst expects its full-year R&D expenses to be less than $15 million due to delays in the timing of certain R&D-related initiatives.

Catalyst Pharmaceuticals, Inc. Price and Consensus

Catalyst Pharmaceuticals, Inc. price-consensus-chart | Catalyst Pharmaceuticals, Inc. Quote

CPRX’s Zacks Rank & Other Stocks to Consider

Catalyst currently carries a Zacks Rank #2 (Buy).

Some other top-ranked pharma stocks are Allogene Therapeutics ALLO, Biogen BIIB and Novartis NVS, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Allogene Therapeutics’ loss estimates have remained constant at $1.41 per share for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.45 per share. ALLO’s shares have gained 0.3% year to date.

Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 11.82%.

Biogen’s earnings estimates have risen from $16.12 to $16.37 per share for 2024 over the past 60 days, while that for 2025 has increased from $17.09 to $17.15. BIIB’s shares have lost 32.6% year to date.

Biogen’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.99%.

Novartis’ earnings estimates have risen from $7.50 to $7.56 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.30 to $8.33. NVS’ shares have risen 5.8% year to date.

Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.

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