Earlier today Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX) has announced promising top-line results in proof-of-concept trial of its CPP-109 (Vigabatrin). CPP-109 is used to treat people with Tourette’s Disorder (TD) that were refractory to the previous treatments. Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX) stated that one out of four patients indicated a clear reduction in tics, whereas two other patients demonstrated 25% reduction in tics. The company’s CEO Patrick McEnanyEnany pointed out that CPP-109’s mechanism of actions validates the potential of CPP-115 for treatment of Tourette’s disorder in the future. As the news about the results broke out, the stock jumped almost 18%, but then retracted to around 4%. In addition to this, MLV & Co has initiated coverage on the stock with a ‘Buy’ rating and a price target of $14, which represents a whopping 250% premium over the closing price on Tuesday. What do hedge funds think about Catalyst Pharmaceutical? Is it a buy at the moment?
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For Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX), the number of hedge funds holding long positions jumped to 12 by the end of first quarter from 11 a quarter earlier. In addition, the aggregate capital invested by these hedge funds in Catalyst also soared by 132% during the first quarter to $108.6 million, while the stock gained only 48% during the same period. This shows that many hedge funds made bullish bets on the stock during the first quarter.