Catalyst Pharmaceutical Partners Inc. CPRX is scheduled to report second-quarter 2015 results after the market closes on Aug 10.
Catalyst Pharma has a pretty good track record with the company beating estimates in the last four quarters with a positive average earnings surprise of 19.20%. Let's see how things are shaping up for this announcement.
Factors Influencing This Quarter
Given that Catalyst Pharma does not have any revenue generating products in its portfolio, investor focus will remain on pipeline and regulatory updates.
At present, Catalyst Pharma has three candidates in development – Firdapse, CPP-115 and CPP-109.
The company’s lead candidate, Firdapse (already approved in Europe for symptomatic treatment of Lambert-Eaton myasthenic syndrome (LEMS)) looks interesting. Catalyst Pharma is currently submitting a rolling new drug application to the FDA for Firdapse with the target of completing the submission in the fourth quarter of 2015 for the treatment of LEMS. Firdapse enjoys breakthrough therapy status in the U.S.
Additionally, the company has plans to evaluate Firdapse for the treatment of neuromuscular orphan diseases such as certain forms of congenital myasthenic syndromes and myasthenia gravis. We expect the company to shed light on its plans for Firdapse’s development in additional indications along with its second-quarter 2015 results.
What Our Model Indicates
Our proven model does not conclusively show that Catalyst Pharma is likely to beat expectations this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat earnings. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00% since the Most Accurate estimate is in line with the Zacks Consensus Estimate of a loss of 6 cents.
Zacks Rank: Catalyst Pharma carries a Zacks Rank #3. Though a Zacks Rank #1, #2 or #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes a surprise prediction difficult.
However, we caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Inovio Pharmaceuticals, Inc. INO has an Earnings ESP of +275.00% and carries a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 10.
The Earnings ESP for BioDelivery Sciences International, Inc. BDSI is +6.45% and it carries a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 10.
Immune Design Corp. IMDZ has an Earnings ESP of +20.41% and carries a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 12.
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