Catalyst Pharmaceuticals doubled Wall Street's earnings expectations amid a strong launch for its new drug, Agamree. In response, the biotech stock jumped Thursday.
Agamree treats a muscle-wasting disease known as Duchenne muscular dystrophy. Catalyst launched the drug in March and, in the first quarter, it generated $1.17 million in sales. BofA Securities analyst Jason Gerberry expected Agamree to bring in less than $1 million in sales.
"Early Agamree launch indicators highlight promising product uptake, surpassing initial expectations," Catalyst Pharmaceuticals said in a news release.
On today's stock market, the biotech stock jumped 6.3% to 15.65. Shares closed in line with their 50-day moving average, according to MarketSurge.
Biotech Stock Rises On Strong Profit
Overall, Catalyst earned an adjusted 40 cents per share on $98.4 million in sales. Earnings handily beat projections for 20 cents a share, while sales were narrowly below forecasts for $98.8 million, according to FactSet. Sales grew 15.4%, while earnings fell 9.1%.
Most of Catalyst's sales came from Firdapse, its treatment for Lambert-Eaton myasthenic syndrome. LEMS is a neuromuscular condition that often affects people with small cell lung cancer. First quarter sales of Firdapse jumped 16.2% to $66.8 million.
Fycompa, the seizure treatment Catalyst licensed from Eisai, generated $30.4 million in sales, surging 9.5%.
For the year, the biotech company reaffirmed its outlook for $455 million to $475 million in sales. Wall Street projected earnings of $1.16 a share and $460.5 million in sales.
Catalyst shares have a Composite Rating of 89 out of a best-possible 99. This means the biotech stock ranks in the top 11% of all stocks in terms of fundamental and technical measures, according to IBD Digital. Shares also have a strong EPS Rating of 93, reflecting its strong profitability.
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