We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Catalyst (CPRX) Up 8.3% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have added about 8.3% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Catalyst Q2 Earnings & Revenues Beat Estimates
Catalyst reported adjusted earnings of 56 cents per share for the second quarter of 2024, beating the Zacks Consensus Estimate of 42 cents. The company reported adjusted earnings of 53 cents in the year-ago quarter.
Total revenues, the majority of which comprised product revenues, amounted to $122.7 million in the reported quarter, representing growth of 23% year over year. The recorded figure also surpassed the Zacks Consensus Estimate of $111.6 million.
Quarter in Detail
Firdapse generated sales worth $77.4 million in the second quarter, up 19.2% year over year. The reported figure beat the Zacks Consensus Estimate of $72.5 million and our estimate of $72.9 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 also started recording sales of its newest epilepsy asset, Fycompa, from 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 robust net product revenues of $36.5 million in second-quarter 2024, which beat the Zacks Consensus Estimate of $33.2 million as well as our model estimate of $33.6 million. Fycompa sales recorded year-over-year growth of 5.7%.
In the third quarter of 2023, CPRX 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 first full quarter of commercialization since launch, Agamree generated revenues worth $8.7 million, which beat the Zacks Consensus Estimate of $6 million and our estimate of $5.2 million. Per Catalyst, early indicators for the drug’s U.S. launch suggest strong demand that exceeds initial expectations.
Research and development (R&D) expenses were $3 million in the reported quarter, down 25% year over year.
Selling, general and administrative (SG&A) expenses totaled $40.7 million, up 43% from $28.4 million reported in the year-ago quarter. 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 Jun 30, 2024, Catalyst had cash, cash equivalents and investments worth $375.7 million compared with $310.4 million as of Mar 31, 2024.
2024 Financial Guidance Updated
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. The company believes that the total revenue figure for 2024 will lie toward the high end of its projected range.
For 2024, the company continues to expect Firdapse revenues between $295 million and $310 million and Fycompa revenues in the $130-$135 million band. Catalyst, however, increased its revenue guidance for Agamree in the range of $35-$40 million from the previously guided range of $25-$30 million, based on the promising demand trend and an encouraging payer landscape.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 5.14% due to these changes.
VGM Scores
At this time, Catalyst has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 these revisions looks promising. 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 belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Corcept Therapeutics (CORT - Free Report) , has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Corcept reported revenues of $163.8 million in the last reported quarter, representing a year-over-year change of +39.1%. EPS of $0.32 for the same period compares with $0.25 a year ago.
Corcept is expected to post earnings of $0.26 per share for the current quarter, representing a year-over-year change of -7.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Corcept. Also, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Catalyst (CPRX) Up 8.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have added about 8.3% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Catalyst Q2 Earnings & Revenues Beat Estimates
Catalyst reported adjusted earnings of 56 cents per share for the second quarter of 2024, beating the Zacks Consensus Estimate of 42 cents. The company reported adjusted earnings of 53 cents in the year-ago quarter.
Total revenues, the majority of which comprised product revenues, amounted to $122.7 million in the reported quarter, representing growth of 23% year over year. The recorded figure also surpassed the Zacks Consensus Estimate of $111.6 million.
Quarter in Detail
Firdapse generated sales worth $77.4 million in the second quarter, up 19.2% year over year. The reported figure beat the Zacks Consensus Estimate of $72.5 million and our estimate of $72.9 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 also started recording sales of its newest epilepsy asset, Fycompa, from 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 robust net product revenues of $36.5 million in second-quarter 2024, which beat the Zacks Consensus Estimate of $33.2 million as well as our model estimate of $33.6 million. Fycompa sales recorded year-over-year growth of 5.7%.
In the third quarter of 2023, CPRX 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 first full quarter of commercialization since launch, Agamree generated revenues worth $8.7 million, which beat the Zacks Consensus Estimate of $6 million and our estimate of $5.2 million. Per Catalyst, early indicators for the drug’s U.S. launch suggest strong demand that exceeds initial expectations.
Research and development (R&D) expenses were $3 million in the reported quarter, down 25% year over year.
Selling, general and administrative (SG&A) expenses totaled $40.7 million, up 43% from $28.4 million reported in the year-ago quarter. 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 Jun 30, 2024, Catalyst had cash, cash equivalents and investments worth $375.7 million compared with $310.4 million as of Mar 31, 2024.
2024 Financial Guidance Updated
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. The company believes that the total revenue figure for 2024 will lie toward the high end of its projected range.
For 2024, the company continues to expect Firdapse revenues between $295 million and $310 million and Fycompa revenues in the $130-$135 million band. Catalyst, however, increased its revenue guidance for Agamree in the range of $35-$40 million from the previously guided range of $25-$30 million, based on the promising demand trend and an encouraging payer landscape.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 5.14% due to these changes.
VGM Scores
At this time, Catalyst has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 these revisions looks promising. 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 belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Corcept Therapeutics (CORT - Free Report) , has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Corcept reported revenues of $163.8 million in the last reported quarter, representing a year-over-year change of +39.1%. EPS of $0.32 for the same period compares with $0.25 a year ago.
Corcept is expected to post earnings of $0.26 per share for the current quarter, representing a year-over-year change of -7.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Corcept. Also, the stock has a VGM Score of C.