Catalyst Pharmaceutical Partners (CPRX) sunk today after it announced its only drug, CPP-109 (vigabatrin), failed a trial to treat cocaine addiction. The company said that the drug did not help a statistically significant number of drug addicts stay cocaine-free compared to those addicts who took a placebo.

We wrote about CPRX back in March when the company axed patients from their trial to save $$$. We also said that if the cocaine trial failed, we would expect a plummet to the abyss (these things aren’t that tough to predict btw).

True to our prediction, CPRX tanked $1.20 (57.14%) to $0.90 on the news.

No fear, the company still has a Phase 2 trial ongoing for methamphetamine addition, the results of which should be available in Q3.

Here were CEO Patrick McEnany thoughts:

“We are obviously disappointed in the cocaine trial results, given the positive results of three prior human trials and numerous animal studies. However, we are not ready to abandon our view that CPP-109 has the potential for use in treating cocaine addiction, which still represents a significant unmet medical need.”

Heh? So they’re continuing more trials? No, they’re going to further analyze the results despite their research coverage (which companies often pay to hype up stocks) advising clients CPRX is over. Ed Nash, managing director of Merriman Curhan Ford, who downgraded Catalyst’s stock, said this:

“Unfortunately, we do not believe Catalyst has the opportunity and the right technology in hand. Given the failure in the Phase II cocaine trial, we believe Catalyst Pharmaceuticals no longer represents a viable biotech investment…the failure of the clinical trial might signify the ‘beginning of the end’ for Catalyst, unless it gets additional financing.”

Has anyone ever mentioned that Vigabatrin is already approved in the US for seizures btw?

Well, no matter what happens, CPRX board director Milton Wallace will be doing just fine in this bomb-ass Coral Gables beach house…wow!!!!

CPRX, The Graveyard (offically) welcomes thee…

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