CPRX - Catalyst Pharmaceuticals: Beaten-Down Orphan Drug Company And A Contrarian Buy
Key investment thesis:
Catalyst Pharmaceuticals (CPRX) stock is cut in more than half after FDA approved rival Jacobus’s therapy Ruzurgi (3,4-DAP) in treating pediatric Lambert-Eaton myasthenic syndrome, LEMS. Investors feared two things: (1) Prescribing clinicians may prefer to prescribe Ruzurgi as off-label even in adult LEMS (both Firdapse (amifampridine) and Ruzurgi have 3,4-DAP); and (2) Catalyst Pharmaceuticals may be forced to lower the price for Firdapse significantly to compete with Jacobus, which was previously giving away 3,4-DAP for free as compassionate use in LEMS. However, with Catalyst Pharmaceuticals management pursuing litigation against the