11:48 AM EST, 03/07/2024 (MT Newswires) -- Catalyst Pharmaceuticals ( CPRX ) is an undervalued biotechnology company with upside tied to its track record for value-accretive transactions, BofA Global Research said in a Thursday note as it initiated coverage on the company.

BofA rated Catalyst as a buy with a price target of $23.

"We see the upcoming launch of muscular dystrophy drug Agamree as the next phase of strategy validation," the investment firm said, adding that the drug could secure a 30% peak share of the steroid market.

BofA also said the company's drug Firdapse has room for further growth from potential price increases and improving diagnosis and treatment rates. Patent litigation related to the product remains a key risk, but a favorable ruling represents additional potential upside to the stock, the investment firm said.

Catalyst Pharmaceuticals ( CPRX ) shares were up more than 2% in recent trading.

Price: 16.26, Change: +0.40, Percent Change: +2.52