Catalyst Pharmaceutical lowers target price to $6 for upcoming IPO

By Jennifer Chiou

New York, Nov. 7 - Catalyst Pharmaceutical Partners, Inc. reduced the expected offering price for its upcoming 3.35 million share initial public offering to $6.00 per share, according to an FWP report filed with the Securities and Exchange Commission.

Catalyst initially set a target price on Oct. 4 of between $11.00 and $13.00 per share for 3 million shares.

The company originally filed for the IPO at an estimated size of $40.25 million in July.

Catalyst said estimated net proceeds will now decrease to $17.693 million, or $20,496,950 if the greenshoe is fully exercised, from $32.48 million.

First Albany Capital Inc. and Stifel, Nicolaus & Co. are joint bookrunners. They have been granted a greenshoe for 502,500 additional shares, up from 450,000 shares.

The Coral Gables, Fla.-based specialty pharmaceutical company is focused on the development of prescription drugs for the treatment of addiction.

Its initial product candidate is CPP-109, which is based on the chemical compound gamma-vinyl-GABA, commonly referred to as vigabatrin, for the treatment of cocaine addiction. Catalyst said it intends to begin phase 2 clinical trials for CPP-109 during the fourth quarter.

The company said it also plans to develop CPP-109 to treat methamphetamine addiction.

IPO proceeds will be used to fund phase 2 and phase 3 trials of CPP-109 for the treatment of coccaine addiction, to file a New Drug Application for CPP-109 for coccaine addiction, to fund clinical trials to evaluate CPP-109 as a treatment for addiction to methamphetamine and nicotine and for general corporate purposes.

Catalyst Pharmaceutical said it had a $674,958 operating loss on no revenue for the six months ended June 30, compared with an operating loss of $1.33 million on no revenue for the same period of 2005. Research and development costs were $432,764 for the first half of 2006, compared with $1.2 million for the first half of 2005.

Cash and cash equivalents were $324,154 at June 30. The company estimated it will have $3.55 million of cash and cash equivalents after the IPO.

The company had 7,029,787 shares of common stock outstanding as of Tuesday. Chief executive officer Patrick J. McEnany is the largest shareholder with 39.9% of the equity, followed by co-founder and director Hubert Huckel at 19% and Jonathan Brodie, principal investigator in the company's drug trial, at 5%.

The company has applied to list its stock on the Nasdaq Global Market under the symbol "CPRX."

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