Catalyst Pharmaceuticals, Inc. (Nasdaq:CPRX) is a biopharmaceutical company that develops and commercializes therapies for rare neurological diseases. It focuses on developing drugs for underserved diseases, which allows it to command premium prices. Notably, its advantage lies in its proprietary process of identifying and repurposing FDA-approved drugs for new uses, which reduces the time and cost of drug development. Additionally, it has a strong patent portfolio that protects their intellectual property and provides a barrier to entry for competitors.
Comps: Akero Therapeutics, Inc. (Nasdaq:AKRO), Xencor, Inc. (Nasdaq:XNCR)
When comparing to other billion-dollar pharmaceutical companies, Catalyst Pharmaceuticals stands out in important fundamentals. Specifically, it recorded positive earnings while its peers did not. Not to mention, its price-to-earnings, debt-to-equity, profit margin, return-on-equity, revenue and revenue growth, and net income were significantly more favorable than its competitors.