Leading biotech Catalyst Pharmaceuticals beat Wall Street's 2023 guidance expectations, and CPRX stock jumped Thursday.
For the year, the company expects its two products to generate $375 million to $385 million in sales, while analysts polled by FactSet projected just $357.1 million in sales. Catalyst sells Firdapse, which treats Lambert-Eaton myasthenic syndrome, or LEMS. LEMS is a muscle condition and often affects people with lung cancer. Catalyst also just bought the U.S. rights to anti-seizure med Fycompa.
"We believe that we are poised to deliver another record year of sustained growth in 2023," Catalyst Chief Executive Patrick McEnany said in his prepared remarks.
On the stock market today, CRPX stock leapt 9.8% and closed at 15.75. Shares are now bounding off their 200-day moving average, according to MarketSmith.com.
CPRX Stock: Earnings Skyrocket
During the fourth quarter, Catalyst earned an adjusted 31 cents per share on $60.7 million in sales. Strict, as-reported earnings came in at 22 cents per share, beating forecasts by a penny, according to FactSet. FactSet didn't have an estimate for adjusted profit. Sales also topped views for $58.1 million.
On a year-over-year basis, Catalyst's adjusted earnings surged 138% while strict, as-reported income climbed 144%. Sales advanced 59%.
Catalyst noted a Firdapse competitor dubbed Ruzurgi was removed from the market last year. That helped push Firdapse sales. Meanwhile, Catalyst expects newly added Fycompa, an Eisai drug, to be accretive to earnings before interest, taxes, amortization and depreciation and earnings per share in 2023.
Still, CPRX stock remains below its 50-day moving average after facing new competition from Teva Pharmaceutical, according to MarketSmith.com.
Highly Rated Biotech Stock
Catalyst is the No. 1 biotech stock, according to IBD Digital.
Shares have a perfect Composite Rating of 99. This means they rank in the top 1% of all stocks when it comes to fundamental and technical measures. Its Relative Strength Rating puts Catalyst stock in the leading 5% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
