Aegis Boosts PT on Catalyst Pharma (CPRX) to $5.50; Thinks Firdapse Competition Overstated

October 21, 2013 9:44 AM EDT
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Aegis Capital is boosting its price target of Catalyst Pharmaceutical Partners (Nasdaq: CPRX) from $4 to $5.50, while maintaining a Buy rating on the company.

Analyst Ram Selvaraju raised his expectations on Firdapse pricing, saying, as we currently believe that this agent is likely to be the sole approved therapy for Lambert-Eaton myasthenic syndrome (LEMS) in the U.S. The analyst initially modeled a price of $30,000 annually for Firdapse, but not thinks that price could be around $70,000 per year and said, this raises our riskadjusted
Net Present Value (rNPV) for the product from $120mm to $230mm. Immediately after a recent capital raise, Catalyst had $27mm in pro forma cash - sufficient capital to sustain operations through 2014 and filing of a New Drug Application (NDA) for Firdapse.

On competition in the segment, Selvaraju comments that recent blog posts have mentioned a company named Jacobus Pharmaceutical Co., Inc., which is conducting a Phase 2 trial of 3,4-diaminopyridine, the same active pharmaceutical ingredient (API) as that found in Firdapse. We have known about the existence of Jacobus since Huxley Pharmaceuticals originally acquired the rights to 3,4-diaminopyridine in the U.S. from EUSA Pharma. Jacobus - despite stating that it has been supplying 3,4-diaminopyridine to LEMS patients in the U.S. for many years - has never attempted to secure FDA approval for its drug and currently has neither a cGMPcompliant manufacturing facility nor a formal pivotal trial protocol in place.

Should Catalyst Pharma be able to obtain FDA Orphan Drug status for Firdapse in LEMS, no other company would be able to sell 3,4-diaminopyridine in the U.S. until expiration of the designation.

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

Shares of Catalyst Pharma closed at $1.90 last Friday, with a 52 week range of $0.37 - $3.65.

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Analyst Comments, Analyst PT Change, FDA