A flattering upgrade and a revamped price target by analysts at Piper Jaffray lit a rocket under Catalyst Pharmaceuticals Inc (NASDAQ:CPRX) on Wednesday.
Shares jumped a massive 30.36% to close at $1.46 with 17.4 million shares changing hands.
Catalyst is a biopharmaceutical company focused on developing and commercializing innovative therapies for people with rare debilitating diseases.
Currently, the company is developing amifampridine phosphate (Firdapse®) for the treatment of Lambert – Eaton Myasthenic Syndrome (LEMS). It has completed a 38 subject, pivotal phase III, global, multi-centered clinical trial and showed amifampridine phosphate to be safe and effective in the treatment of patients with LEMS.
Piper Jaffray’s upgrade is a shot in the arm for Catalyst Pharmaceuticals Inc (NASDAQ:CPRX)
Investors may still be nursing their wounds from the crash in the price of Catalyst after the company announced in late April 2016 that the FDA had requested additional data in its resubmission of a new drug application forFirdapse, the aforesaid treatment for LEMS.
“We are surprised with the FDA’s request for an additional clinical study for Firdapse, but are encouraged that the agency is open to an efficient, small short-term study design,” said CEO Patrick J McEnany at the time.
According to Piper Jaffray, Catalyst’s finalised design for its second Phase III trial for Firdapse comes with a lower clinical risk, more so because the company has been involved closely with the FDA on the design.
According to TheStreet, which quoted Fly, Piper Jaffray analysts are of the opinion that the Firdapse program “will soon be on track and poised for 2017 value creation.”
Piper Jaffray has upgraded Catalyst from Neutral to Overweight and raised their price target to $4 from $1 per share.
Technically, the stock embarked on an uptrend immediately after the April crash, making successively higher lows and higher highs. Yesterday’s high volume advance has taken the price well above the 200 day SMA, providing clinching evidence of a sustained advance.