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Why Is Catalyst (CPRX) Up 0.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Catalyst due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Catalystreported adjusted earnings of 38 cents per share for the first quarter of 2024, beating the Zacks Consensus Estimate of 34 cents. The company reported adjusted earnings of 41 cents in the year-ago quarter.
Total revenues amounted to $98.5 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $97 million. Total product revenues climbed 15.4% to $98.4 million, from the year-ago quarter’s $85.3 million. The top line primarily comprised product sales of Firdapse, Fycompa (perampanel) CIII and nominal revenues from Agamree (vamorolone) sales along with license and other revenues.
Quarter in Detail
Firdapse generated sales worth $66.8 million in the first quarter, up 16.2% year over year, beating our estimate of $61.9 million, 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, from the first quarter of 2023. In January 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 robust net product revenues of $30.4 million in first-quarter 2024, which missed our model estimate of $32.9 million. Fycompa sales, however, recorded year-over-year growth of 9.5%.
The company reported revenues of $1.2 million from the Agamree sales in the first quarter, which reflects approximately the first two weeks of U.S. commercial availability. Per Catalyst, early indicators for the drug’s U.S. launch suggest strong demand that exceeds initial expectations.
License and other revenues in the reported quarter were $0.07 million, relatively flat year over year.
The cost of sales was $12.5 million, up 25.9% year over year.
Research and development (R&D) expenses were $2.6 million in the reported quarter, down 27.5% year over year.
Selling, general and administrative (SG&A) expenses totaled $46.9 million, up 57.9% from $29.7 million reported in the year-ago quarter. This uptick in costs is primarily due to the pre-launch investments in preparation for the launch of Agamree.
As of Mar 31, 2024, Catalyst had cash, cash equivalents and investments worth $310.4 million, which includes approximately $140.7 million in net proceeds yielded from the 10 million shares of common stock offering in January 2024 compared with $137.6 million as of Dec 31, 2023.
2024 Financial Guidance Reaffirmed
Catalyst reiterated its previously provided financial guidance for 2024 in its first-quarter earnings release.
Catalyst continues to expect total revenues in the range of $455-$475 million for the full year, boosted by the continued growth of Firdapse, Fycompa and additional net product revenues from Agamree.
For 2024, the company expects Firdapse revenues between $295 million and $310 million, Agamree revenues in the range of $25-$30 million and Fycompa revenues in the $130-$135 million band.
The company expects R&D costs to increase as it is planning to initiate a long-term safety and quality of life study on Agamree. SG&A expenses are also projected to increase significantly in 2024, due to the launch of Agamree and the cumulative commercial and marketing activities to support three commercial products compared with two in 2023.
Catalyst also expects its effective tax rate to increase slightly in 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Catalyst has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Catalyst has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Catalyst is part of the Zacks Medical - Drugs industry. Over the past month, Esperion Therapeutics (ESPR - Free Report) , a stock from the same industry, has gained 18.2%. The company reported its results for the quarter ended March 2024 more than a month ago.
Esperion Therapeutics reported revenues of $137.74 million in the last reported quarter, representing a year-over-year change of +466.1%. EPS of $0.34 for the same period compares with -$0.79 a year ago.
Esperion Therapeutics is expected to post a loss of $0.18 per share for the current quarter, representing a year-over-year change of +60.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +17.1%.
Esperion Therapeutics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is Catalyst (CPRX) Up 0.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Catalyst due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Catalyst Q1 Earnings Top, Firdapse Sales Drive Revenues
Catalystreported adjusted earnings of 38 cents per share for the first quarter of 2024, beating the Zacks Consensus Estimate of 34 cents. The company reported adjusted earnings of 41 cents in the year-ago quarter.
Total revenues amounted to $98.5 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $97 million. Total product revenues climbed 15.4% to $98.4 million, from the year-ago quarter’s $85.3 million. The top line primarily comprised product sales of Firdapse, Fycompa (perampanel) CIII and nominal revenues from Agamree (vamorolone) sales along with license and other revenues.
Quarter in Detail
Firdapse generated sales worth $66.8 million in the first quarter, up 16.2% year over year, beating our estimate of $61.9 million, 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, from the first quarter of 2023. In January 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 robust net product revenues of $30.4 million in first-quarter 2024, which missed our model estimate of $32.9 million. Fycompa sales, however, recorded year-over-year growth of 9.5%.
The company reported revenues of $1.2 million from the Agamree sales in the first quarter, which reflects approximately the first two weeks of U.S. commercial availability. Per Catalyst, early indicators for the drug’s U.S. launch suggest strong demand that exceeds initial expectations.
License and other revenues in the reported quarter were $0.07 million, relatively flat year over year.
The cost of sales was $12.5 million, up 25.9% year over year.
Research and development (R&D) expenses were $2.6 million in the reported quarter, down 27.5% year over year.
Selling, general and administrative (SG&A) expenses totaled $46.9 million, up 57.9% from $29.7 million reported in the year-ago quarter. This uptick in costs is primarily due to the pre-launch investments in preparation for the launch of Agamree.
As of Mar 31, 2024, Catalyst had cash, cash equivalents and investments worth $310.4 million, which includes approximately $140.7 million in net proceeds yielded from the 10 million shares of common stock offering in January 2024 compared with $137.6 million as of Dec 31, 2023.
2024 Financial Guidance Reaffirmed
Catalyst reiterated its previously provided financial guidance for 2024 in its first-quarter earnings release.
Catalyst continues to expect total revenues in the range of $455-$475 million for the full year, boosted by the continued growth of Firdapse, Fycompa and additional net product revenues from Agamree.
For 2024, the company expects Firdapse revenues between $295 million and $310 million, Agamree revenues in the range of $25-$30 million and Fycompa revenues in the $130-$135 million band.
The company expects R&D costs to increase as it is planning to initiate a long-term safety and quality of life study on Agamree. SG&A expenses are also projected to increase significantly in 2024, due to the launch of Agamree and the cumulative commercial and marketing activities to support three commercial products compared with two in 2023.
Catalyst also expects its effective tax rate to increase slightly in 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Catalyst has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Catalyst has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Catalyst is part of the Zacks Medical - Drugs industry. Over the past month, Esperion Therapeutics (ESPR - Free Report) , a stock from the same industry, has gained 18.2%. The company reported its results for the quarter ended March 2024 more than a month ago.
Esperion Therapeutics reported revenues of $137.74 million in the last reported quarter, representing a year-over-year change of +466.1%. EPS of $0.34 for the same period compares with -$0.79 a year ago.
Esperion Therapeutics is expected to post a loss of $0.18 per share for the current quarter, representing a year-over-year change of +60.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +17.1%.
Esperion Therapeutics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.