CPRX - Catalyst Pharmaceuticals: Attractive Valuation Has Priced In Risks

• Catalyst Pharma is a commercial-stage small biotech with a highly profitable orphan drug Firdapse for adult LEMS patients in the US market.
• Catalyst Pharma is trading at PE ratio of 5 and price-to-sales ratio of 2.96. The company exited Q3 with $127M in cash and no debt.
• The low valuation is possibly due to the risk related to the competing drug Ruzurgi that was approved by FDA for pediatric LEMS patients and its limited pipeline potential.
• Despite the fear that doctors might prescribe Ruzurgi off-label for adult patients, Catalyst has been able to hold on to its adult patient population very well. The stock remains undervalued.

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