Why Catalyst Pharmaceuticals Stock Broke Down Today
Shares of the rare-disease drugmaker Catalyst Pharmaceuticals (NASDAQ: CPRX) dipped by as much as 12.3% almost immediately out of the gate this morning in response to the company's second-quarter earnings release, which hit the wires after the closing bell on Tuesday.
What caused investors to hit the panic button? Catalyst's brief double-digit downturn this morning appears to be the result of short-sellers betting on another round of panic selling. The drugmaker, after all, is dealing with a significant competitive threat to its Lambert-Eaton myasthenic syndrome (LEMS) drug Firdapse, which isn't sitting well with Catalyst's shareholders.
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