(NASDAQ:CPRX) makes a drug called Firdapse for Lambert-Eaton myasthenic syndrome (LEMS), a rare autoimmune disorder. Since the drug's first sales in 2019, the company's quarterly revenue has exploded by a shocking 7,090%. And in the coming years, that revenue could grow even more.
Now, Catalyst is focused on expanding Firdapse's approved indications to cover more populations of patients with LEMS, starting with children. At the same time, the company is developing an extended-release version of Firdapse, which will be preferable for patients and potentially command a higher selling price too. It's also working to commercialize Firdapse in Japan, starting early next year with a small registrational clinical trial that'll pave the way for larger investigations.
Opening up new markets outside of the U.S. and Canada could be huge, as LEMS is so rare that only one in 100,000 people has it -- and Catalyst is the only company working on treatments. The main challenge will be finding markets where the disease is known enough to be consistently diagnosed. So, Catalyst's decision to target Japan is a good one, as the country has a high concentration of healthcare resources which should ensure that people with LEMS are both findable and treatable with Firdapse. Eventually, scaling the business to reach all of the LEMS patients in the entire world isn't something that's too far-fetched.
Aside from its soon-to-be-expanding indications and its foray into foreign markets, the stock is priced to perfection. Its trailing price-to-earnings (PE) ratio is 18, which is vastly lower than the wider market's average near 30.
Also, looking for a bounce, then a breakout up.
Now, Catalyst is focused on expanding Firdapse's approved indications to cover more populations of patients with LEMS, starting with children. At the same time, the company is developing an extended-release version of Firdapse, which will be preferable for patients and potentially command a higher selling price too. It's also working to commercialize Firdapse in Japan, starting early next year with a small registrational clinical trial that'll pave the way for larger investigations.
Opening up new markets outside of the U.S. and Canada could be huge, as LEMS is so rare that only one in 100,000 people has it -- and Catalyst is the only company working on treatments. The main challenge will be finding markets where the disease is known enough to be consistently diagnosed. So, Catalyst's decision to target Japan is a good one, as the country has a high concentration of healthcare resources which should ensure that people with LEMS are both findable and treatable with Firdapse. Eventually, scaling the business to reach all of the LEMS patients in the entire world isn't something that's too far-fetched.
Aside from its soon-to-be-expanding indications and its foray into foreign markets, the stock is priced to perfection. Its trailing price-to-earnings (PE) ratio is 18, which is vastly lower than the wider market's average near 30.
Also, looking for a bounce, then a breakout up.