Insider Buying Points To Huge Upside For These 3 Beaten-Down Stocks

Three different insiders have purchased shares of Catalyst Pharmaceuticals Inc. (NASDAQ:CPRX) over the past several days. To start with, Chief Operating Officer Steven R. Miller acquired 7,933 shares on Monday at a price of $1.80 per share and currently owns 457,687 shares. Director Charles B. O’Keeffe bought 5,000 shares last Friday at $1.94 apiece, lifting his overall stake to 377,126 shares. Last but not least, Donald A. Denkhaus, a Member on the company’s Board of Directors, doubled his ownership stake to 50,000 shares last Thursday. The 25,000-share block was acquired at a cost of $2.03 per unit of common stock.

The development-stage biopharmaceutical company focuses on prescription drugs targeting rare (orphan) neuromuscular and neurological diseases and disorders, but does not have approved drug candidates just yet. The company has three drug candidates in development at the moment, with its Firdapse for the treatment of Lambert-Eaton Myasthenic Syndrome (LEMS) being anticipated to gain approval from the FDA in the third quarter of 2016. Although it is uncertain whether Catalyst Pharmaceuticals will be successful in obtaining approval for this drug candidate, the company is already preparing the marketing campaign for Firdapse in the United States. The company appointed a Chief Commercial Officer back in 2015 and has been working with rare disease advocacy organizations to increase awareness of LEMS. Meanwhile, 14 smart money investors had stakes in the company at the end of September, owning 27% of its outstanding shares. Baker Bros. Advisors, managed by Julian and Felix Baker, holds 7.34 million shares of Catalyst Pharmaceuticals Inc. (NASDAQ:CPRX) as of September 30.