Can Catalyst Pharmaceuticals Stock Rebound in 2020?
In many ways, the rare disease drugmaker Catalyst Pharmaceuticals (NASDAQ: CPRX) had an outstanding year in 2019. The company's first approved medicine Firdapse -- indicated for an autoimmune disease known as Lambert-Eaton myasthenic syndrome (LEMS) -- officially hit the market on Jan. 15, 2019. It subsequently went on to markedly exceed Wall Street's sales projections for the year. As a direct result, Catalyst's shares nearly doubled in value over the course of the year. That's a successful year by most accounts.
A closer inspection of the drugmaker's year, though, reveals some serious problems that could impact its long-term outlook. Last May, for instance, the Food and Drug Administration dealt Catalyst an unexpected blow with the approval of Jacobus Pharma's Ruzurgi for use in LEMS patients between the ages of six and 17. The big deal is that doctors can prescribe Ruzurgi off-label for adult LEMS patients -- a phenomenon that did in fact cut into Catalyst's market share during the latter part of the year. The direct consequence of this unexpected competitive threat is that Catalyst's shares ultimately shed 49% of their value, relative to their 52-week high.
Image source: Getty Images.
Source Fool.com
