Dallas, Texas 10/24/2013 (Financialstrend) – Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX) is $83 million market capitalized generic drug manufacturer. It is still in a development stage with none of its target drugs yet past the FDA goal post. During trading on October 23, the stock breached the $2 price point to post a 10.44% increase in its share value in context to its previous day close. Yesterday’s gain follows Tuesday rally that the stocks scripted resulting in gains of 12% from its Monday evening close price.
The huge rally was set off by rating agency Aegis’ Ram Selvaraju upping the price target of Catalyst Pharmaceutical to $5.5 from its earlier $4. At close of business on October 23, the stock of this drug maker was trading at $2.01 per share and the price target indicates a 175% premium on its current valuations.
Another plausible reason for the sudden increase in investor interest leading to strong build up in trading volume is the big jump in stocks held by insiders of the firm. Over the past week, the share holding by insiders has shot up to settle at 35% of the total 41.45 million shares outstanding.
Trade magazine Wall Cheat Sheet has reported that the company president and another officer of the firm have between them purchased close to 60,000 shares. Mcenany Patrick who serves as the Chief Executive Officer and President of Catalyst Pharmaceutical led the stock purchase quartet by buying 50,000 shares by shelling out $79,730. O’keeffe Charles B was the other insider who purchased close to 10,000 shares by paying $18,392.
This rally by the stock is a bit difficult to fathom since in the previous week’s trading it has shed close to 23% of its value and more than 34% of its market valuation in the past one month. At current valuation the stock is trading 443% above its 52 week low pricing.