On Thursday, Citi initiated coverage on Catalyst Pharmaceutical Partners (NASDAQ:CPRX), bestowing a Buy rating on the stock with a price target of $27.00. The firm highlighted Catalyst's focus on rare disease markets and its successful flagship product, Firdapse, which is used to treat Lambert-Eaton Myasthenic Syndrome (LEMS) and has the potential to reach over $500 million in peak sales.
Catalyst has demonstrated a consistent revenue growth over the last approximately two years, attributed to its robust patient finding network that has effectively transitioned identified patients to its drug. The company's commercial product pipeline recently expanded with two acquisitions. In December 2022, Catalyst acquired Fycompa, an epilepsy treatment, and in June 2023, it added Agamree for Duchenne muscular dystrophy (DMD) to its portfolio.
Citi's assessment points out that all three of Catalyst's assets carry limited risk. Firdapse and Fycompa are already commercialized products with proven revenue performance, while Agamree has a comparable competitor that provides a benchmark for sales projections.
The firm's stance is that Catalyst's track record in commercializing rare disease assets and its largely de-risked portfolio make the company's shares an attractive investment at the current valuation. The analyst described the stock as a "Buy/High Risk" with a target price of $27 per share.
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