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Background
Old News
Recent Developments
Technicals/Notes
Background
- A commercial-stage biopharma company focused on developing and commercializing therapeutics for debilitating rare, chronic neuromuscular, and neurological diseases
- Lead asset Firdapse= approved in Nov 2018 for the treatment of Lambert-Eaton myasthenic syndrome (LEMS) in adults
- Firdapse is also in a P1 study for the treatment of spinal muscular atrophy (SMA) type-3
- Partnered with KYE Pharmaceuticals to commercialize Firdapse in Canada
Old News
- Experienced extreme volatility over the past two years
- Peaked at $7.57 on 9/11/19 up +244% from its 104-week low of 2.23 set on 5/9/19
- Dropped over 40% in May 2020 from ~$6 after the FDA approved Jacobs Pharmaceuticals drug Ruzurgi for treating LEMs in childrenÂ
- Investors reasoned that this would put significant competitive pressure on Firdapse which is chemically similar to Ruzurgi
- Filed a patent infringement suit against Pharmaceuticals and PantherRx and is seeking damages; Oct 2020
Recent Developments
- Outlined a strategic plan for product portfolio expansion and long term success;Â 1/6/21
- Announced a $40MÂ share repurchase program;Â 3/22/21Â
- Reported 4Q20/FY20 financial results; 3/15/21
- 4Q20 rev= $31M (+3% YoY)
- FY20 rev= $199M (+16% YoY)
- FY20 net income (GAAP)= $31M
- Cash as of 12/31/20 = $140M and no debt
- Announced along with its partner Kye a positive decision in their lawsuit in Canadian Federal Court challenging Health Canada’s approval of Ruzurgi; 6/3/21
- However, soon after on 6/28/21 Health Canada re-issued a Notice of Compliance (NOC) for Ruzurgi allowing the product to be marketed in CanadaÂ
- The duo are evaluating their options for litigation
- Signed an exclusive license and supply agreement with DyDo Pharma to develop/
commercialize Firdapse in Japan; 6/28/21 - Was issued a new patent for Firdapse; 7/19/21
- Highlights from 1Q21 earnings; 5/10/21
- Â 1Q20 rev= $30M (+3%Â YoY)
- 1Q20 net income (GAAP) = $7.4M (-29% YoY)
- Strong cash position of $144M as of 3/31/21
- Received Orphan Drug Designation for Firdapse in Japan
- Actively engaged in the evaluation of potential acquisitions of products or companies
Technicals/Notes
- Although profitability declined YoY in the most recent quarter, the company is still generating meaningful cash flow with ample growth prospects for Firdapse on the horizon
- We are looking to see what M&A moves CPRX makes as they have made this intention clear
- We like the fact that management is using some of their cash flow to reinvest in CPRX stock
