Catalyst Pharmaceuticals struck a deal Wednesday with Teva Pharmaceutical that will prevent the generic-drug maker from knocking off Firdapse until 2035.
Firdapse treats Lambert-Eaton myasthenic syndrome, or LEMS. LEMS is a rare autoimmune disorder that weakens the muscles and makes it difficult to move. It's often associated with small cell lung cancer. Firdapse is one of three drugs Catalyst sells.
Under the settlement, Teva won't market the proposed generic if it receives Food and Drug Administration approval until at least Feb. 25, 2035. The companies will also end all ongoing patent litigation over Firdapse.
In response, shares of Catalyst Pharmaceuticals rocketed 16.7%, closing at 22.80. That helped shares rise above their 50-day moving average, MarketSurge shows. But, in after-hours trades, Catalyst stock was down about 4.3%. Teva stock closed down a fraction.
Catalyst stock lands on the IBD Tech Leaders list.
Follow Allison Gatlin on X/Twitter at @IBD_AGatlin.
