CPRX - Catalyst Pharmaceuticals: Nothing Has Changed
Yesterday, Catalyst Pharmaceuticals (NASDAQ: CPRX), a small-cap orphan drugmaker, saw its shares tumble by as much as 20% on sky-high volume. This sizable downturn, in kind, prompted the company to issue a press release toward the end of the day's trading session essentially stating that management was unaware of any material event underlying this dramatic sell-off.
Nonetheless, the biotech's shares still ended the day down by an unsightly 16.7%, leaving shareholders wondering what the heck happened. Catalyst's stock, after all, had been in the midst of a fairly strong upward trend prior to yesterday's bloodbath. My take is that shareholders should basically shrug off Monday's unpleasant action and look to the future. Here's why.
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