Biotech stocks are weathering the deluge of tariffs better than some other industry groups. And Catalyst Pharmaceuticals stock is one of those that seems to be thriving.
Catalyst is Thursday's selection for IBD 50 Stocks To Watch as it hovers above a buy point of 24.64. Catalyst is prospering as the biotech/biomed group ranks 55th among 197 industry groups in the Investor's Business Daily database, according to IBD Stock Checkup. Further, the group has moved up from 70th place in six weeks.
Catalyst makes drugs to treat rare nervous conditions that affect how muscles function. In 2024, the company launched its drug to treat Duchenne muscular dystrophy — a genetic condition affecting muscles.
The company also won the U.S. Food and Drug Administration's approval to increase the maximum daily dosage of its drug to treat patients with Lambert-Eaton myasthenic syndrome, or LEMS — an autoimmune disorder that affects muscles and nerves.
Shares soared more than 15% on Jan. 8 after the company won a patent lawsuit that will prevent Teva Pharmaceuticals from marketing a generic version of Catalyst's LEMS drug before Feb. 25, 2035.
Catalyst Pharmaceutical Stock In Buy Zone
Catalyst stock now sits just above an early-stage consolidation base. Shares started to get extended earlier this week, touching an all-time intraday high of 26.16 on Monday. Since then, the stock has retreated and now sits in a buy zone that reaches up to 25.87. The relative strength line, which compares the stock with the benchmark S&P 500 index, is also at a new high on a weekly chart, as seen by the blue dot on IBD MarketSurge.
Shares gapped up to their 50-day moving average after fourth-quarter results on Feb. 27. Sales grew 28% to $141.8 million while earnings per share of 70 cents rose 32% from the prior year. For 2025, the company gave a sales outlook of $555 million at the midpoint.
Catalyst Pharma stock holds a near-ideal Composite Rating of 98 while its Earnings Per Share Rating sits at a best-possible score of 99. The stock has also outperformed 95% of other stocks in the Investor's Business Daily database.
Shares also boast a top-notch Accumulation/Distribution Rating of A-. That shows that big institutional investors have been buying shares of the biotech leader in the most recent 13 weeks. Shares are in demand, going by their Up/Down Volume Ratio of 1.4.
Funds own 61% of outstanding shares. More funds have been net buyers over the past five quarters. The iShares Core S&P Small Cap exchange traded fund is one of those holding Catalyst Pharmaceuticals stock.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
