Jim Cramer - Mad Money Catalyst Pharmaceuticals CPRX-Q DON'T BUY Jan 22, 2024

A biopharma that develops for rare diseases, such as LEMS for which CPRX's drug has received approval. But this trip costs US$360,000. Only insurance allows CPRX to charge such prices; revenues have been rising. But there's a ceiling, because there are a limited number of people afflicted with this disease. They bought US rights for the drug Fycompa, and bought a company that makes aGamree to treat another rare disease. An analyst believes the latter drug and feels shares can double. However, the firm Oppenheimer said that CPRX didn't need the money, and then the same firm was listed as a co-manager for a recent share offering. Result: shares dropped 15%. Last year, the CEO retired, and the CFO stepped down, so he thought CPRX may be sold, but the offering throws doubt on that. That said, rare disease companies are hot and so CPRX could be taken over. He doesn't like their business model: buying other companies and their drugs instead of developing their own. And their two drugs have patent protection for only a few more years--bad. There are better stocks in this space.