Catabasis Pharmaceuticals Inc (NASDAQ:CATB)
Catabasis Pharmaceuticals Inc (NASDAQ:CATB) closed trading on Friday at $1.45 but has gapped up in today’s pre-market and hit a high of $2.25 – a gain of over 55%. Pre-market volumes have been heavy as over 625,000 shares have traded hands by 8:40 AM EST. Despite this morning’s massive gain, CATB shares are still down over 58% YTD, and 70% for the year.
The market’s demand for shares of Catabasis Pharmaceuticals Inc (NASDAQ:CATB) seem to be rooted in this morning’s press release by the biotech company regarding the additional results, deemed favorable, across five functional assessments in the Move DMD trial. Results were announced at the American Academy of Neurology’s 69th Annual Meeting.
Catabasis Pharmaceuticals Inc (NASDAQ:CATB) MoveDMD trial is a three-part clinical trial determing the safety and efficacy of edasalonexent in males aged 4-7 who are afflicted with Duchenne muscular dystrophy (DMD). During the treatment period with edasalonexent, positive numerical changes were observed when compared to the same tests being performed with a period when dosing was not done. A regimen of 100 mg/day of edasalonexent showed improvements across the same five assessments when compared to the placebo group. Cambridge, MA-based Catabasis Pharmaceuticals Inc (NASDAQ:CATB) will release the next clinical trial update in Q3 of 2017.
Catabasis Pharmaceuticals Inc (NASDAQ:CATB) focuses on the discovery, development, and commercialization of therapies designed to treat inflammatory and metabolic diseases. In addition to the drug described above for thetreatment of DMD, the biotech has drug candidates addressing illnesses such as hyercholeserolemia and hypertriglyceridemia. The company has collaboration agreements with muscular dystrophy associations and Serepta Therapeurics (SRPT).
Catabasis Pharmaceuticals Inc (NASDAQ:CATB) went public in 2015 and hit a high around $17 but has declined from those levels and traded, mostly, below $2 for all of 2017. The 52-week high is $7.89 and the 52-week low is $1.08. CATB shareholders had an EPS loss of (-$2.13) in 2015 and that figure stayed almost the same for 2016 when the company reported an EPS loss of (-$2.22). At the same time, there has been share dilution. In 2014 there were 13.85 million shares, then 15.34 million shares outstanding in 2015, and for 2016 there were 16.23 million shares outstanding. Four firms follow Catabasis and three assign the shares a rating of “Strong Buy” while one rates CATB shares as a “Hold”. Their consensus target price is $6.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.