Roth Capital Reiterates a Buy Rating on Catalyst Pharma

In a report released today, Scott Henry from Roth Capital reiterated a Buy rating on Catalyst Pharma (NASDAQ: CPRX), with a price target of $7. The company’s shares opened today at $4.

Henry wrote, “CPRX reported 2Q15 EPS loss of $0.06, which was slightly less than our targeted loss of $0.07. The lower loss was mostly related to lower R&D spending during the quarter. We reiterate our Buy rating for the promise of the Firdapse program for the treatment of LEMS with the rolling NDA filing likely to be completed in 4Q15. Reiterate Buy rating and $7/share price target. 2Q15 recap – Not that material. Revenues were nil as expected. Lower R&D spending decreased the EPS loss by ~$0.01. Net, the EPS loss of $0.06 was slightly less than our $0.07 EPS loss target. Overall, we viewed the results as fundamentally in-line. The cash balance is now ~$67 million, which gives a runway “through the end of 2016.” Takeaway #1 – Firdapse NDA to be complete in 4Q15. The company maintained its 4Q15 target completion date (mid-December) for the rolling Firdapse NDA for the treatment of Lambert-Eaton Myasthenic Syndrome (LEMS). The rolling NDA was initiated in July 2015.”

Catalyst Pharma has an analyst consensus of Hold.

The company has a one year high of $5.80 and a one year low of $2.17. Currently, Catalyst Pharma has an average volume of 921.9k.

Unlike Roth Capital`s latest rating, based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is neutral on the stock. Most recently, in April 2015, David Muth, a the EVP & COO of CPRX bought 2,000 shares for a total of $7,083.

According to TipRanks.com, Henry is a top 100 analyst with an average return of27.6% and a 63.2% success rate. Henry covers the Healthcare sector, focusing on stocks such as Flamel Technologies S.A., Apricus Biosciences Inc, and Alexza Pharmaceuticals.

Catalyst Pharmaceuticals Inc is abiopharmaceutical company. The Company is engaged in the development and commercialization of prescription drugs targeting rare (orphan) neurological diseases and disorders.