Pharma Stock's Earnings Impress Investors; Is It A Buy Now?
Catalyst's stock shot up after their sales for 2023 were forecasted to be higher than what analysts had originally predicted.
After Catalyst Pharmaceuticals (CPRX), reported earnings that exceeded analysts' expectations, the stock is trying to rebound.
The stock suffered a significant pullback in January but shares were able to regain their 21-day exponential moving mean after the March 15 earnings reports. However, shares are facing resistance at the 50 day moving average. Despite this setback, the stock seems to be building a new base.
Pharma Stock to Watch: Catalyst's Products
Two key products are available from the company: Firdapse which treats Lambert-Eaton myasthenic Syndrome and Fycompa, an anti-seizure medication.
According to the company's most recent earnings report, it projected that its two products would generate sales of $375 million to 385 million for 2023. This was higher than the estimates of FactSet analysts who forecast only $357.1 million in sales.
Shares rose nearly 10% after the earnings announcement. Catalyst's adjusted earnings rose 138% to cents per share, while the strict as-reported income increased 144%. MarketSmith reports that sales rose 59% to $60.9million.
Catalyst's Firdapse competitor was eliminated from the market last year, which helped boost sales. Catalyst Chief Executive Patrick McEnany stated that he believes the company is poised for another record-breaking year of sustained growth in 2023 in prepared remarks in connection with the latest earnings report.
The company is ranked No. The company holds the No. 1 ranking among its peers in IBD’s biotech industry group. It is currently ranked 39th among the 197 groups IBD measures. The group also holds a Group RS Rating A.
Chart Analysis: New Base for Stock
The stock fell nearly 30% on Jan. 23 and moved below the 50-day mark in heavy volume. The company announced that Teva Pharmaceutical, an Israeli-based drugmaker, was planning to create a generic Firdapse.
Since then, shares have been consolidating and are still above the 200-day moving mean. Although it is too early to determine a buy point, the stock could be starting to form a new base.
Fund ownership increased to 430 funds in the December-ended quarter from 320 funds a year earlier.