Catalyst Pharmaceutical Partners, Inc. Investor Lawsuit alleges Misleading Statements

Nov. 19, 2013 - PRLog -- An investor, who purchased shares of Catalyst Pharmaceutical Partners, Inc. , filed a lawsuit in the U.S. District Court for the Southern District of Florida over alleged violations of Federal Securities Laws by Catalyst Pharmaceutical Partners, Inc. in connection with certain allegedly false and misleading statements made between October 31, 2012 and October 18, 2013

If you purchased a significant amount of shares of Catalyst Pharmaceutical Partners, Inc.  between October 31, 2012 and October 18, 2013, and / or if you purchased any NASDAQ-CPRX prior to October 2012 and currently hold any of those shares, you have certain options and there are short and strict deadlines running. Deadline: December 24, 2013. NASDAQ-CPRX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired Catalyst Pharmaceutical Partners, Inc.  between October 31, 2012 and October 18, 2013, that Catalyst Pharmaceutical Partners, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934

More specifically, the plaintiff alleges that Catalyst Pharmaceutical Partners, Inc. failed to disclose between October 31, 2012 and October 18, that one of its competitors has already been manufacturing a drug biologically equivalent to Firedapse–a drug Catalyst has claimed to be developing and marketing–and providing it to patients to treat Lambert-Eaton Myasthenic Syndrome free of charge, through a compassionate use program.

On October 15, 2013, Catalyst Pharmaceutical Partners, Inc. announced that, at a recently held meeting, the independent Data Monitoring Committee (DMC) overseeing the Company's ongoing pivotal Phase III clinical trial in the United States and Europe evaluating Firdapse™ for the treatment of Lambert-Eaton Myasthenic Syndrome (“LEMS”) recommended that the Company continue the trial as planned based on the committee's review of safety and clinical data from the trial.

However, then on October 18, 2013, a report was published about Catalyst Pharmaceutical Partners, Inc. and its drug Firdapse. The article stated that upon a closer look into Catalyst Pharmaceutical and one discovers “allegations of profiteering off a small group of vulnerable, sick patients and a ton of clinical and regulatory risk”. The article said that “In exchange for spending the time and money to develop drugs for diseases that might ordinarily be ignored, these companies get to charge sky-high prices” and that”insurance companies generally pick up the tab without complaints because there are so few patients who need these expensive drugs.” However, the article stated that Catalyst Pharmaceutical Partners, Inc.is developing Firdapse for LEMS and will likely charge the few thousand LEMS patients in the U.S.more than $60,000 per year even though the same drug is already available for the past 20 years to U.S LEMS patients for free by a small, private, family-owned pharmaceutical company in New Jersey called Jacobus Pharmaceuticals.

Shares of Catalyst Pharmaceutical Partners, Inc.  declined from over $3.50 in early October 2013 to $1.50 per share on October 21, 2013.

On October 25, 2013, NASDAQ-CPRX shares closed at $1.87 per share.

Those who purchased shares of Catalyst Pharmaceutical Partners, Inc. , have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554