Catalyst Pharmaceuticals, Inc. Comments on Trading in its Common Stock and on its Capital Resources
September 23 2019 - 2:55PM
Catalyst Pharmaceuticals, Inc. (NasdaqCM:
CPRX) is commenting on today's trading activity in its common
stock and on the current state of its capital resources.
The Company is reporting that it is not aware of
any information about the Company's activities that has not been
reported that would give rise to today's decline in the market
price of the Company's common stock.
For the first six months of 2019, the Company
reported net product revenue of $41.3 million and net income of
$10.3 million (or $0.10 per basic and diluted share). The Company
also reported that at June 30, 2019, it had $64.9 million of cash
and investments and working capital of $57.9 million, and that the
Company had positive cash flow in the first six months of 2019.
Further, the Company reported in its SEC filings for the 2019
second quarter that it had sufficient resources for its current
activities for at least the next 12 months from the date of such
report, and this statement remains true today.
When the Company announced its previously
withdrawn public offering, it reported that it would use the
proceeds of the offering for business expansion and for future
acquisitions or in-licensing of additional product candidates or
businesses. While no such opportunities had been identified to
date, the Company believed that having available working capital on
its balance sheet would allow the Company to more quickly take
advantage of future opportunities if they became available.
The Company believes that its stock remains
undervalued and does not believe that raising additional capital in
the public market through sales of equity in the foreseeable future
would be in the best interest of the Company and its stockholders.
Further, although there can be no assurance, the Company believes
that if an acquisition or in-licensing opportunity were to be
identified, the Company expects that it would also be able to raise
the required funds for these purposes using non-dilutive debt
financing sources.
About Catalyst
Pharmaceuticals
Catalyst Pharmaceuticals is a biopharmaceutical
company focused on developing and commercializing innovative
therapies for people with rare debilitating, chronic neuromuscular
and neurological diseases, including Lambert-Eaton myasthenic
syndrome (LEMS), anti-MuSK antibody positive myasthenia gravis
(MuSK-MG), congenital myasthenic syndromes (CMS), and spinal
muscular atrophy (SMA) Type 3. Catalyst's new drug application for
Firdapse® (amifampridine) 10 mg tablets for the treatment of adults
with LEMS was approved in November 2018 by the U.S. Food & Drug
Administration ("FDA"), and Firdapse is now commercially available
in the United States. Prior to its approval, Firdapse for LEMS had
received breakthrough therapy designation and orphan drug
designation from the FDA.
Firdapse is currently being evaluated in
clinical trials for the treatment of MuSK-MG, CMS, and SMA Type 3
and has received Orphan Drug Designation from the FDA for
myasthenia gravis and CMS. Firdapse (amifampridine) 10 mg tablets
is the first and only approved drug in Europe for the symptomatic
treatment in adults with LEMS.
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 and
may include, without limitation, risks related to market
conditions and financing opportunities. A number of factors,
including those factors described in Catalyst's Annual Report on
Form 10-K for the fiscal year 2018 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.
Investor Contact
Brian Korb
Solebury Trout
(646) 378-2923
bkorb@troutgroup.com
Company Contact
Patrick J. McEnany
Catalyst Pharmaceuticals
Chief Executive Officer
(305) 420-3200
pmcenany@catalystpharma.com
Media Contacts
David Schull
Russo Partners
(212) 845-4271
david.schull@russopartnersllc.com
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