Is Catalyst Pharmaceutical Partners Inc (NASDAQ:CPRX) Exploiting Unwell People?

Posted by George Brook October 22, 2013 0 Comment 1105 views

Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) is a small-cap bio-pharma company that is involved in the production of novel orphan drugs. Many investors also consider it to be the next Acadia. On Friday, the company experienced a very strong sell-off after Adam Feuerstein, the senior columnist at The Street published his investigative report.

In short, the article thrashed Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) for trying to benefit from unwell people with Firdapse, their upcoming drug. In addition to this, the article portrayed the company as an evil corporation. Nothing has changed in the basic sense of the word for Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) but the article seemed to have a very biased view and made mention of just one segment of the company’s pipeline.

The panic selling that took place post Adam Feuerstein’s investigative-article was definitely exaggerated. Firdapse, the drug is all set to release some positive results in 2014 and should receive the FDA nod in the following year. Sales should start by 2016 and can reach a peak annual sale of $300M which means that Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) might just be at the start of a winning streak.

Monday’s trading

In Monday’s trading, Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) dropped by 20.00%. The opening price of the shares was $1.82, which climbed to an intraday high of $1.91 and dipped to a close of $1.52. Approximately 7.05 million shares were traded on Monday while an average volume of 2.68 million shares were traded over a 30 day period. The 52-week low of Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) shares is $0.37 and its 52-week high is $3.65. Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) has a market capitalization of $80.40 million.

About the company

Catalyst Pharmaceutical Partners, Inc (NASDAQ:CPRX) is focused on developing and commercializing prescription drugs that target addiction disorders and diseases of the central-nervous system and focuses on addiction and epilepsy treatment.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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