Catalyst settlement with Teva a positive event, says BofA

BofA keeps a Buy rating on Catalyst Pharmaceuticals (CPRX) with a $30 price target following the announcement of a Firdapse patent settlement with a key generic challenger Teva (TEVA). Teva was important as one of three shared generic Firdapse first-filers and Firdapse is Catalyst’s largest revenue-generating drug, the analyst tells investors in a research note. The firm believes the terms of the Teva deal were favorable to Catalyst, calling for generic entry in 2035. If the other two generic filers reach Teva-like settlement deals, this would give Catalyst a “long exclusivity runway,” contends BofA. It views the update as a positive event for Catalyst.