IBD 50 Leader And No. 1 Biotech Catalyst Puts Up 128% Earnings Growth

Catalyst Pharmaceuticals, the No. 1 biotech company (CPRX), had a mixed performance in its first quarter on Thursday. However, CPRX's stock rose higher due to its positive growth.

Catalyst launched two new products in the first quarter. Sales soared by 98%, to $85.4 millions. This was higher than the $81.6 million expected.

Firdapse is a treatment that treats Lambert-Eaten Myasthenic Syndrome (LEMS). Its sales reached $57.5 million. Sales of Firdapse increased by 34% in comparison to the previous year. LEMS is a form of autoimmune disease, in which the immune systems attacks the body’s tissues.

Fycompa is Catalyst’s latest product. It generated sales of $27,8 million. Fycompa, an anti-seizure medication made by Eisai(ESAIY), generated $27.8 million in sales. In January, Catalyst purchased the rights to sell Fycompa within the United States.

CPRX rose by 1.8% in premarket trading today, near 17.80.

CPRX stock: earnings come in light

The earnings were mixed. Catalyst's earnings per share were 26 cents on a strictly reported basis. According to FactSet, this was below the analyst expectations of 32 cents per share. Unadjusted earnings rose 117% over the past year.

Catalyst's adjusted earnings increased 128%, to 41 cents a share. FactSet surveyed analysts who did not have an estimate of adjusted earnings.

Catalyst forecasted $375-$385 million of sales for the full year. The midpoint was just a little below the $381.5 million forecast by CPRX analysts. Patrick McEnany, Chief Executive of CPRX, says that the company continues to look for new business deals in order to boost its sales.

In a written announcement, he stated that "despite significant progress being made on all fronts," business development continues to be a top priority. "Our team continues making substantial progress through vigorous evaluations of a large number of opportunities to pursue innovative assets that align with and complement our portfolio growth approach."

The No. 1 Biotech Stock

According to MarketSmith.com, CPRX is the leader among a group that includes nearly 800 biotech shares. It has perfect Composite Ratings and EPS ratings of 99. The shares are in the top 1% when it comes both to fundamental and technical metrics, as well as growth in earnings.

IBD Digital also shows that shares have a Relative Strength rating of 97. This puts their performance over the past 12 months in the top 3% of all stocks.

CPRX also ranks fifth in the IBD 50 list elite growth stocks.