What happened

Shares of Catalyst Pharmaceuticals (NASDAQ:CPRX) were jumping 13.7% higher as of 3:01 p.m. EST on Monday. Investors reacted positively after Catalyst provided a corporate update earlier in the day that included a sneak peek at full-year 2019 net revenue for lead drug Firdapse and guidance for 2020. 

So what

Catalyst estimates that full-year 2019 net revenue for Firdapse will be around $102 million, with fourth-quarter net revenue of around $30 million. Catalyst also said that it expects to report a cash stockpile of around $95 million as of the end of 2019 with no funded debt. This puts the company in a position where it won't have to raise additional cash in the near term. 

Hand wearing a glove holding a test tube

Image source: Getty Images.

The company looks for strong growth in 2020. Catalyst provided guidance that projects full-year 2020 net product revenue for Firdapse in treating Lambert-Eaton myasthenic syndrome (LEMS) of between $135 million and $155 million. It also expects that research and development and sales, general, and administrative expenses for the year will be around $65 million based on generally accepted accounting principles (GAAP).

In addition, Catalyst announced that its clinical study evaluating Firdapse in treating anti-MuSK antibody positive myasthenia gravis (MuSK-MG) has met its enrollment goals. CEO Patrick McEnany said that the company is on track to complete this study and report top-line data in the first half of 2020. He also stated that Catalyst is focusing "on expanding the possible use of Firdapse as a treatment for other indications, while at the same time we aim to broaden our entire product pipeline."

Now what

Catalyst's update was chock-full of good news. It's important to note, though, that the actual 2019 revenue numbers for Firdapse won't be available until the company reports its fourth-quarter results, which should happen by March 16. 

Not every pharmaceutical stock performs well during the first year after the launch of a lead product. However, Catalyst stock nearly doubled in 2019 and is off to a good start in 2020. Investors will want to closely watch the results from the drugmaker's MuSK-MG clinical study. Good news from this study should enable Catalyst to keep up its winning ways.

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