Why Catalyst Pharmaceuticals Stock Is Crashing Today

George Budwell, The Motley Fool
·2-min read
Why Catalyst Pharmaceuticals Stock Is Crashing Today

Shares of the rare-disease drugmaker Catalyst Pharmaceuticals (NASDAQ: CPRX) are under pressure Tuesday morning. Catalyst's stock is sinking in response to the news that the company's effort to expand the label of its one and only approved drug, Firdapse, has failed for a second time in less than a year's time. Per Catalyst's second-quarter earnings report, Firdapse did not meet the primary endpoint in a pivotal-stage trial as a treatment for muscle-specific kinase myasthenia gravis (also known as MuSK-positive myasthenia gravis), a rare but debilitating neuromuscular disorder.