Catalyst Pharma hit after FDA approves competitor’s drug

Catalyst Pharmaceuticals Inc. CPRX, -42.55% shares plunged more than 40% in after-hours trading Monday afternoon, when the Food and Drug Administration approved a competitive drug to its Firdapse. That drug helps those who suffer from a rare disease called Lambert-Eaton myasthenic syndrome, or LEMS, and Catalyst charges a list price of $375,000 for it. Before Catalyst received exclusive rights to the drug, it was given away for free by Jacobus Pharmaceutical Co., a private company in New Jersey. On Monday, the FDA approved a version of the drug from Jacobus that is meant to be marketed for pediatric use, while Firdapse is recommended only for use in adults.

https://www.marketwatch.com/story/catalyst-pharma-stock-plummets-after-fda-approves-competitors-drug-2019-05-06?mod=hp_investing