Catalyst Pharmaceuticals, Inc. (Catalyst) (Nasdaq:CPRX), a
biopharmaceutical company focused on developing and commercializing
innovative therapies for people with rare debilitating
neuromuscular and neurological diseases, today reported financial
results for the second quarter ended June 30, 2017 and provided a
corporate update.
“We continue to make progress towards completion
of enrollment in our confirmatory Phase 3 trial of Firdapse® in
LEMS patients,” said Patrick J. McEnany, Chief Executive Officer of
Catalyst. “We look forward to receiving top-line results from our
Phase 3 trial, and assuming the trial is successful, to
resubmitting an NDA for Firdapse® for the treatment of LEMS before
the end of the year. We also remain committed to the development of
Firdapse® for other indications, including congenital myasthenic
syndromes and MuSK antibody positive myasthenia gravis.
Additionally, we expect to recommence our efforts to develop a
commercialization plan for Firdapse® before the end of the year so
as to be in a position to launch the product in 2018 if we are
successful in obtaining FDA approval to commercialize the
product."
Mr. McEnany continued: "We are also continuing
our efforts to seek a partner for the development of CPP-115 and
for our generic version of Sabril®. Although no agreements have
been entered into to date and there can be no assurance, we are
hopeful that we can bring these efforts to a successful conclusion
in the second half of 2017."
Q2 and Recent Highlights
- Joined the broad-market Russell 3000® Index, effective June
26
- Presented overview of CPP-115 program at the Antiepileptic Drug
and Device Trials XIV Symposium
- Received a 2017 Beacon Award for contributions in the Life
Sciences & Healthcare category
- Presentation by investigator of clinical data from the recently
completed proof of concept study of Firdapse for the treatment of
MuSK-MG at the 13th International Conference on Myasthenia Gravis
and Related Disorders in May 2017
- Ended the second quarter with $35.1 million in
cash and investments and no debt
Upcoming Milestones
- Complete enrollment in LEMS (LMS-003) and CMS (CMS-001)
clinical trials
- Expect top-line results from second Phase 3 trial for LEMS; and
NDA submission for Firdapse® in second-half 2017
- Define our regulatory path forward for the MuSK-MG
pivotal, multi-center trial
- Reinitiate pre-commercialization activities for a potential
2018 launch of Firdapse during second half 2017
- Expect top-line results from CMS trial in the first half of
2018
Second Quarter 2017 Financial Results
For the quarter ended June 30, 2017, Catalyst
reported a GAAP net loss of $3,879,901, or $0.05 per basic and
diluted share, compared to a GAAP net loss of $4,568,914, or $0.06
per basic and diluted share, for the same period in 2016. Excluding
the non-cash gain of $210,331 attributable to the change in fair
value of liability-classified warrants, Non-GAAP1 net loss was
$4,090,232 or $0.05 per basic and diluted share for the second
quarter of 2017. In comparison, Non-GAAP1 net loss for the second
quarter of 2016 was $4,721,697, or $0.06 per basic and diluted
share, which excludes non-cash gain of $152,783 attributable to the
change in fair value of liability-classified warrants.
For the six months ended June 30, 2017, Catalyst
reported a GAAP net loss of $8,847,030, or $0.11 per basic and
diluted share, as compared to a GAAP net loss of $9,955,151, or
$0.12 per basic and diluted share, for the same period in 2016.
Excluding non-cash expense of $186,904 attributable to the change
in fair value of liability-classified warrants, Non-GAAP1 net loss
was $8,660,126 or $0.10 per basic and diluted share for the first
six months of 2017. In comparison, Non-GAAP1 net loss for the first
six months of 2016 was $10,841,290, or $0.13 per basic and diluted
share, which excludes non-cash gain of $886,139 attributable to the
change in fair value of liability-classified warrants.
Research and development expenses for the second
quarter of 2017 were $2,451,751 compared to $2,508,897 in the
second quarter of 2016. For the six months ended June 30, 2017,
research and development expenses were $5,265,680 as compared to
$6,055,288 in the same period in 2016. Research and development
expenses for the first six months of 2017 continued to be
substantial as the Company continued its ongoing trials evaluating
Firdapse® for the treatment of LEMS and CMS. The Company expects
that costs related to research and development activities will
continue to be substantial throughout the balance of 2017 and into
2018 as it continues its clinical studies and trials and works to
resubmit an NDA for Firdapse®.
General and administrative expenses for the
second quarter of 2017 totaled $1,729,520 as compared to $2,305,555
in the second quarter of 2016. For the six months ended June 30,
2017, general and administrative expenses were $3,595,462 as
compared to $4,996,700 in the same period in 2016. The decrease
when compared to the same period in 2016 is primarily due to
decreased employee costs due to a reduction in headcount, and a
decrease in recruiting expenses and consulting costs for
pre-commercialization activities, as part of our initiatives to
conserve cash. The Company expects general and administrative
expenses, excluding pre-commercialization expenses, to remain
consistent for the balance of 2017. The Company also expects
pre-commercialization expenses (which are reported in G&A) to
increase in the second half of 2017 as the Company recommences its
efforts to develop a commercialization plan for Firdapse®.
As a development-stage biopharmaceutical
company, Catalyst had no revenues in either the second quarter of
2017 and 2016 or the first six months of 2017 and 2016.
At June 30, 2017, Catalyst had cash and cash
equivalents and short-term investments of $35.1 million and no
debt. Catalyst believes that its existing capital resources will be
sufficient to support its planned operations through at least the
next 12 months.
More detailed financial information and analysis
may be found in the Company's Quarterly Report on Form 10-Q, which
was filed with the Securities and Exchange Commission (SEC) on
August 9, 2017.
1 Statements made in this press release
include a non-GAAP financial measure. Such information is provided
as additional information and not as an alternative to Catalyst's
financial statements presented in accordance with generally
accepted accounting principles (GAAP). This non-GAAP financial
measure is intended to enhance an overall understanding of
Catalyst's current financial performance. Catalyst believes that
the non-GAAP financial measure presented in this press release
provides investors and prospective investors with an alternative
method for assessing Catalyst's operating results in a manner that
Catalyst believes is focused on the performance of ongoing
operations and provides a more consistent basis for comparison
between periods. The non-GAAP financial measure in this press
release excludes from the calculation of net loss the expense (or
the income) associated with the change in fair value of the
liability-classified warrants. Non-GAAP net loss per share is
calculated by dividing non-GAAP net loss by the weighted average
common shares outstanding.
Conference Call
Catalyst management will host an
investment-community conference call and webcast at 8:30 a.m.
EDT on Thursday, August 10th, 2017 to discuss the financial
results and provide a corporate update. Investors who wish to
participate in the conference call may do so by dialing (877)
407-8912 for domestic and Canadian callers or (201) 689-8059 for
international callers. Those interested in listening to the
conference call live via the internet may do so by visiting the
Investors page of the company's website
at www.catalystpharma.com and clicking on the webcast
link on the Investors home page. A webcast replay will be available
on the Catalyst website for 30 days following the call by visiting
the Investor page of the company's website
at www.catalystpharma.com.
About Catalyst
Pharmaceuticals
Catalyst Pharmaceuticals is a biopharmaceutical
company focused on developing and commercializing innovative
therapies for people with rare debilitating neuromuscular and
neurological diseases, including Lambert-Eaton myasthenic syndrome
(LEMS), congenital myasthenic syndromes (CMS), MuSK antibody
positive myasthenia gravis and infantile spasms. Firdapse® has
received Breakthrough Therapy Designation from the U.S. Food and
Drug Administration (FDA) for the treatment of LEMS and Orphan Drug
Designation for LEMS, CMS and myasthenia gravis. Firdapse is the
first and only approved drug in Europe for symptomatic treatment in
adults with LEMS.
Catalyst is also developing CPP-115 to treat
refractory infantile spasms, and possibly refractory Tourette's
Disorder. CPP-115 has been granted U.S. Orphan Drug Designation for
the treatment of infantile spasms by the FDA and has been granted
E.U. Orphan Medicinal Product Designation for the treatment of West
syndrome by the European Commission. In addition, Catalyst is
developing a generic version of Sabril® (vigabatrin).
Forward-Looking Statements
This press release contains forward-looking
statements. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause Catalyst's actual results
in future periods to differ materially from forecasted results. A
number of factors, including whether the receipt of breakthrough
therapy designation for Firdapse will expedite the development and
review of Firdapse by the FDA or the likelihood that the product
will be found to be safe and effective, the timing of Catalyst's
second trial evaluating Firdapse for the treatment of LEMS and
whether the trial will be successful, whether Catalyst's
assumptions in its updated business plan will be accurate and the
impact of unanticipated events or delays in projected activities on
Catalyst's cash requirements and on Catalyst's ability to get to an
accepted NDA submission for Firdapse without the need for
additional funding, what clinical trials and studies will be
required before Catalyst can resubmit an NDA for Firdapse for the
treatment of CMS and whether any such required clinical trials and
studies will be successful, whether any NDA for Firdapse
resubmitted to the FDA will ever be accepted for filing, the timing
of any such NDA filing or acceptance, whether, if an NDA for
Firdapse is accepted for filing, such NDA will be given a priority
review by the FDA, whether Catalyst can successfully design and
complete a registration trial evaluating Firdapse for the treatment
of MuSK-MG that is acceptable to the FDA, whether any such future
trial evaluating Firdapse for the treatment of MuSK-MG will be
successful, whether Catalyst can obtain the funding required to
conduct such a trial, whether Firdapse will ever be approved for
commercialization, whether Catalyst will be the first company to
receive approval for amifampridine (3,4-DAP), giving it 5-year
marketing exclusivity for its product, whether CPP-115 will be
determined to be safe for humans, what additional testing will be
required before CPP-115 is "Phase 2 ready", whether CPP-115 will be
determined to be effective for the treatment of refractory
infantile spasms or possibly Tourette's Disorder or for any other
indications, whether Catalyst can successfully design and complete
a bioequivalence study of its version of vigabatrin compared to
Sabril that is acceptable to the FDA, whether any such
bioequivalence study the design of which is acceptable to the FDA
will be successful, whether any ANDA that Catalyst submits for a
generic version of Sabril will be accepted for filing, whether any
ANDA for Sabril accepted for filing by the FDA will be approved
(and the timing of any such approval), whether any of Catalyst's
product candidates will ever be approved for commercialization or
successfully commercialized, and those other factors described in
Catalyst's Annual Report on Form 10-K for the fiscal year 2016 and
its other filings with the U.S. Securities and Exchange Commission
(SEC), could adversely affect Catalyst. Copies of Catalyst's
filings with the SEC are available from the SEC, may be found on
Catalyst's website, or may be obtained upon request from Catalyst.
Catalyst does not undertake any obligation to update the
information contained herein, which speaks only as of this
date.
CATALYST PHARMACEUTICALS, INC. |
|
STATEMENTS OF OPERATIONS
(unaudited) |
|
|
|
For the Three
Months Ended June 30, |
|
For the Six MonthsEnded June
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
|
$ |
2,451,751 |
|
|
$ |
2,508,897 |
|
|
$ |
5,265,680 |
|
|
$ |
6,055,288 |
|
|
General
and administrative |
|
|
1,729,520 |
|
|
|
2,305,555 |
|
|
|
3,595,462 |
|
|
|
4,996,700 |
|
|
Total
operating costs and expenses |
|
|
4,181,271 |
|
|
|
4,814,452 |
|
|
|
8,861,142 |
|
|
|
11,051,988 |
|
|
Loss from
operations |
|
|
(4,181,271 |
) |
|
|
(4,814,452 |
) |
|
|
(8,861,142 |
) |
|
|
(11,051,988 |
) |
|
Other income, net |
|
|
91,039 |
|
|
|
92,755 |
|
|
|
201,016 |
|
|
|
210,698 |
|
|
Change in fair value of
warrants liability |
|
|
210,331 |
|
|
|
152,783 |
|
|
|
(186,904 |
) |
|
|
886,139 |
|
|
Loss
before income taxes |
|
|
(3,879,901 |
) |
|
|
(4,568,914 |
) |
|
|
(8,847,030 |
) |
|
|
(9,955,151 |
) |
|
Provision for income
taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Net
loss |
|
$ |
(3,879,901 |
) |
|
$ |
(4,568,914 |
) |
|
$ |
(8,847,030 |
) |
|
$ |
(9,955,151 |
) |
|
Net loss per share –
basic and diluted |
|
$ |
(0.05 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.12 |
) |
|
Weighted average
shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding – basic and diluted |
|
|
83,905,827 |
|
|
|
82,870,649 |
|
|
|
83,441,650 |
|
|
|
82,865,366 |
|
|
CATALYST PHARMACEUTICALS, INC. |
|
CONDENSED BALANCE SHEETS |
|
|
|
June 30,
2017 |
|
December 31, 2016 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
8,583,727 |
|
$ |
13,893,064 |
Short-term investments |
|
|
26,547,663 |
|
|
26,512,753 |
Prepaid
expenses and other current assets |
|
|
621,558 |
|
|
1,047,944 |
Total
current assets |
|
|
35,752,948 |
|
|
41,453,761 |
Property
and equipment, net |
|
|
218,289 |
|
|
244,204 |
Deposits |
|
|
8,888 |
|
|
8,888 |
Total
assets |
|
$ |
35,980,125 |
|
$ |
41,706,853 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
692,345 |
|
$ |
933,176 |
Accrued
expenses and other liabilities |
|
|
1,148,080 |
|
|
1,161,359 |
Total
current liabilities |
|
|
1,840,425 |
|
|
2,094,535 |
Accrued
expenses and other liabilities, non-current |
|
|
170,519 |
|
|
181,162 |
Warrants
liability, at fair value |
|
|
-- |
|
|
122,226 |
Total
liabilities |
|
|
2,010,944 |
|
|
2,397,923 |
|
|
|
|
|
Total stockholders’
equity |
|
|
33,969,181 |
|
|
39,308,930 |
Total liabilities and
stockholders’ equity |
|
$ |
35,980,125 |
|
$ |
41,706,853 |
Investor Contact
Brian Korb
The Trout Group LLC
(646) 378-2923
bkorb@troutgroup.com
Media Contact
David Schull
Russo Partners
(212) 845-4271
david.schull@russopartnersllc.com
Company Contact
Patrick J. McEnany
Catalyst Pharmaceuticals
Chief Executive Officer
(305) 420-3200
pmcenany@catalystpharma.com
Catalyst Pharmaceuticals (NASDAQ:CPRX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Catalyst Pharmaceuticals (NASDAQ:CPRX)
Historical Stock Chart
From Apr 2023 to Apr 2024