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If You Invested $1000 in Catalyst Pharmaceutical 10 Years Ago, This Is How Much You'd Have Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Catalyst Pharmaceutical (CPRX - Free Report) ten years ago? It may not have been easy to hold on to CPRX for all that time, but if you did, how much would your investment be worth today?

Catalyst Pharmaceutical's Business In-Depth

With that in mind, let's take a look at Catalyst Pharmaceutical's main business drivers.

Coral Gables, FL-based Catalyst Pharmaceuticals, Inc. is a development-stage biopharmaceutical company, focused on the development and commercialization of therapies targeting rare neurological diseases and disorders, such as Lambert-Eaton Myasthenic Syndrome (LEMS), epilepsy (initially infantile spasms) and Tourette syndrome.
 
In October 2012, Catalyst in-licensed rights to Firdapse (amifampridine phosphate)from BioMarin Pharmaceutical Inc. to develop and commercialize the product in the United States. Firdapse is currently approved in the European Union as well as in the United States for the symptomatic treatment of LEMS in adults. LEMS is an ultra-rare disease and the company estimates approximately 3,000 LEMS patients in the United States.
 
The company is also strengthening the commercial portfolio of Firdapse. It already received multiple patents that cover the treatment of all amifampridine metabolizer types within the LEMS patient population. As a result, these patents will now provide intellectual property protection to Firdapse through 2034.
 
Apart from Firdapse, Catalyst Pharmaceuticals is working on a generic version of Lundbeck’s Sabril (vigabatrin), CPP-109, for the treatment of infantile spasms and complex partial seizures. The company is also looking towards opportunities to diversify its business as well as invest in innovative opportunities for rare diseases.
 
Catalyst recorded revenues worth $141 million for 2021, reflecting an increase of 18% on a year-over-year basis

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Catalyst Pharmaceutical, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in August 2012 would be worth $7,709.68, or a gain of 670.97%, as of August 26, 2022, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 197.57% and gold's return of 1.10% over the same time frame.

Looking ahead, analysts are expecting more upside for CPRX.

Catalyst reported optimistic second-quarter results, beating estimates on both counts. Catalyst’s lead drug Firdapse, approved to treat Lambert-Eaton Myasthenic Syndrome — an ultra-rare disease — witnessed an encouraging uptake since its launch in 2019. Analysts are optimistic about this trend and expect the same to continue in 2022. The company’s efforts to develop Firdapse for other rare neuromuscular indications are also impressive. A possible label expansion will boost Catalyst’s top line. Yet, its overdependence on Firdapse for growth and lack of any other promising candidates in its pipeline, are a major concern. However, the company is looking into opportunities to diversify its pipeline. Stiff competition also remains a woe. The stock has underperformed the industry year to date.

Over the past four weeks, shares have rallied 35.28%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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