Catalyst Pharmaceuticals (CPRX)

The investment thesis for cheap stocks in the biopharmaceutical industry is usually predicated on the success of a new drug in clinical trials.

Catalyst is one of the few companies with a successful drug already on the market: Firdapse. Firdapse is used to treat Lambert-Eaton myasthenic syndrome, also known as LEMS.

The treatment has been a success, with Catalyst experiencing a 134 percent quarter-to-quarter increase in revenue during the first quarter of 2021 as a result of Firdapse.

Despite the fact that the market for LEMS treatments is small (about one in every million people has LEMS), Firdapse is currently being tested as a treatment for muscle-specific kinase myasthenia gravis and Spinal Muscular Atrophy Type 3.

If either of these trials is successful by the end of the trials, Catalyst will have newer, larger markets into which to expand, and shareholders will continue to profit.

Stock price is US $3.54, making it one of the cheapest stocks to buy right now.

Founded: 2002
Market Cap: 798.649M
Website: catalystpharma.com