Catalyst Pharma (CPRX) Grossly Undervalued, Says H.C. Wainwright

H.C. Wainwright reiterated a Buy rating on Catalyst Pharmaceutical Partners (NASDAQ: CPRX) with a price target of $13. Comments follow positive top-line results from the pivotal Phase 3 clinical trial of Firdapse for the symptomatic treatment of Lambert-Eaton myasthenic syndrome (LEMS). Analyst Andrew S. Fein views the stock as grossly undervalued and he anticipates growing M&A speculation.

"Yesterday’s Firdapse study win (see below) advances CPRX yet closer to a $300M orphan drug, now pending completion of a rolling NDA submission by mid-2015, with potential approval in 4Q15, and commercial launch in 1Q16," said Fein.

"Importantly, while the focus of the next 16 months will be taking Firdapse through the FDA and into the LEMS market, the company also noted its intent to expand Firdapse further into congenital myasthenic syndrome and refractory myasthenia gravis, two indications which together could double the current market opportunity held by LEMS," he added. "Overall, we believe that the study readout finally signals transition into a stage where perhaps initial investor anxiety about potential dilution will be quickly overcome by growing speculation about possible M&A, though in our view, and as a reality check, an orphan asset with positive data and breakthrough designation currently trading at $210M (as of this morning) remains grossly undervalued on all counts."

For an analyst ratings summary and ratings history on Catalyst Pharmaceutical Partners click here. For more ratings news on Catalyst Pharmaceutical Partners click here.

Shares of Catalyst Pharmaceutical Partners closed at $2.99 yesterday.

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