Catabasis Pharmaceuticals, Inc. (CATB)
Catabasis Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing therapeutics for rare diseases. Their lead product, edasalonexent, targets Duchenne muscular dystrophy (DMD), while CAT-5571 aims to treat cystic fibrosis and tuberculosis.
Company Overview
Catabasis Pharmaceuticals pioneers novel treatments for rare diseases, focusing on DMD and cystic fibrosis, with edasalonexent in Phase III trials offering a potential breakthrough for patients and a compelling investment opportunity in a high-need market.
Investment Thesis
Catabasis Pharmaceuticals presents a compelling investment opportunity due to its focus on rare diseases with high unmet needs. The Phase III clinical trial of edasalonexent for DMD represents a near-term catalyst with the potential for significant market impact. Positive trial results could lead to rapid regulatory approval and commercialization, driving substantial revenue growth. Furthermore, the development of CAT-5571 for cystic fibrosis and tuberculosis expands the company's pipeline and diversifies its revenue streams. With a market capitalization of $0.23 billion, Catabasis offers significant upside potential if its clinical programs are successful. The company's collaborations with the Jain Foundation and the Bill & Melinda Gates Medical Research Institute validate its scientific approach and provide access to additional resources and expertise.
Key Highlights
- Edasalonexent is in Phase III clinical trials for the treatment of Duchenne muscular dystrophy (DMD).
- CAT-5571 is being developed for the treatment of cystic fibrosis.
- Preclinical research collaboration with the Jain Foundation to study edasalonexent in dysferlinopathy.
- Agreement with the Bill & Melinda Gates Medical Research Institute to study CAT-5571 in drug-sensitive and drug-resistant tuberculosis.
- Market Cap of $0.23 billion indicates potential for growth if clinical trials are successful.
Competitors
Strengths
- Lead product candidate (edasalonexent) in Phase III clinical trials.
- Focus on rare diseases with high unmet needs.
- Strategic collaborations with the Jain Foundation and the Bill & Melinda Gates Medical Research Institute.
- Oral formulation of edasalonexent offers patient convenience.
Weaknesses
- Clinical-stage company with no currently marketed products.
- High dependence on the success of edasalonexent.
- Limited financial resources compared to larger pharmaceutical companies.
- Profit Margin is -13938.2%
Catalysts
- Upcoming: Results from Phase III clinical trial of edasalonexent for DMD.
- Upcoming: Initiation of clinical trials for CAT-5571 in cystic fibrosis.
- Ongoing: Progress in preclinical research collaboration with the Jain Foundation for dysferlinopathy.
- Ongoing: Advancement of CAT-5571 development in collaboration with the Bill & Melinda Gates Medical Research Institute for tuberculosis.
Risks
- Potential: Failure to obtain regulatory approval for edasalonexent.
- Potential: Unfavorable clinical trial results.
- Ongoing: Dependence on third-party manufacturers and suppliers.
- Ongoing: Competition from established pharmaceutical companies with greater resources.
- Potential: Difficulty in raising additional capital to fund clinical development.
Growth Opportunities
- Edasalonexent Commercialization: Upon successful completion of Phase III trials and regulatory approval, edasalonexent has the potential to capture a significant share of the DMD treatment market, estimated to reach billions of dollars. The timeline for commercialization is dependent on clinical trial outcomes, but could occur within the next 2-3 years. Catabasis's competitive advantage lies in its oral formulation and novel mechanism of action.
- CAT-5571 Development for Cystic Fibrosis: The development of CAT-5571 for cystic fibrosis represents another significant growth opportunity. The cystic fibrosis market is substantial, with ongoing needs for improved treatments. Positive preclinical and clinical data could lead to partnerships or further internal development, driving long-term value. Timeline for clinical trials is estimated at 2-4 years.
- Expansion into Dysferlinopathy: The preclinical research collaboration with the Jain Foundation to study edasalonexent in dysferlinopathy opens up a new therapeutic avenue. Dysferlinopathy is a rare muscle disorder with limited treatment options, presenting a significant unmet need and market opportunity. Preclinical studies are ongoing, with potential for clinical trials in the next 3-5 years.
- Tuberculosis Treatment with CAT-5571: The agreement with the Bill & Melinda Gates Medical Research Institute to study CAT-5571 in tuberculosis provides access to a global market with substantial unmet needs. Tuberculosis remains a major global health challenge, particularly in drug-resistant forms. Positive results could lead to significant funding and partnerships to advance CAT-5571's development.
- Strategic Partnerships and Acquisitions: Catabasis can pursue strategic partnerships or acquisitions to expand its pipeline and access new technologies. Collaborations with larger pharmaceutical companies could provide funding and expertise to accelerate the development and commercialization of its existing programs. This could lead to increased shareholder value and long-term growth.
Opportunities
- Positive clinical trial results for edasalonexent leading to regulatory approval.
- Expansion of pipeline through internal development and strategic acquisitions.
- Partnerships with larger pharmaceutical companies for commercialization.
- Orphan drug designation providing market exclusivity and regulatory benefits.
Threats
- Clinical trial failures or delays.
- Competition from other companies developing treatments for DMD and cystic fibrosis.
- Regulatory hurdles and changing reimbursement policies.
- Potential for generic competition upon patent expiration.
Competitive Advantages
- Proprietary oral small molecule therapeutics.
- Focus on rare diseases with limited treatment options.
- Established research collaborations with leading institutions.
- Orphan drug designation for edasalonexent, providing market exclusivity.
About
Founded in 2008 and headquartered in Boston, Massachusetts, Catabasis Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company dedicated to the discovery, development, and commercialization of innovative therapeutics for severe diseases. The company's primary focus is on addressing unmet medical needs in rare diseases, particularly Duchenne muscular dystrophy (DMD) and cystic fibrosis. Their lead product candidate, edasalonexent, is an oral small molecule designed to inhibit nuclear factor kappa-light-chain-enhancer of activated B cells (NF-kB), a crucial pathway involved in inflammation and muscle degeneration in DMD. Edasalonexent is currently in Phase III clinical trials, representing a significant milestone in its development. In addition to edasalonexent, Catabasis is also developing CAT-5571 for the treatment of cystic fibrosis and tuberculosis. The company has established research collaborations with the Jain Foundation to explore edasalonexent's potential in dysferlinopathy and with the Bill & Melinda Gates Medical Research Institute to investigate CAT-5571's efficacy against drug-sensitive and drug-resistant tuberculosis. Catabasis operates with a lean structure of approximately 20 employees, emphasizing strategic partnerships and efficient clinical development to maximize its impact on patient outcomes.
What They Do
- Develop oral small molecule therapeutics.
- Focus on treating rare diseases with unmet medical needs.
- Target Duchenne muscular dystrophy (DMD) with edasalonexent.
- Develop CAT-5571 for cystic fibrosis.
- Collaborate with research institutions to expand their pipeline.
- Conduct Phase III clinical trials for lead product candidate.
Business Model
- Develop and commercialize proprietary therapeutics.
- Out-license or partner with larger pharmaceutical companies for commercialization.
- Secure funding through venture capital, public offerings, and grants.
- Collaborate with research institutions for preclinical and clinical development.
Industry Context
Catabasis Pharmaceuticals operates within the biotechnology industry, which is characterized by high innovation and significant regulatory hurdles. The market for rare disease treatments is growing rapidly, driven by increased awareness, improved diagnostics, and regulatory incentives such as orphan drug designation. The competitive landscape includes companies focusing on gene therapies, small molecules, and other innovative approaches to treating genetic disorders. Catabasis differentiates itself through its focus on NF-kB inhibition and its strategic collaborations to expand its pipeline and address multiple disease areas. The biotechnology sector is expected to continue its growth trajectory, fueled by advancements in genomics, personalized medicine, and drug delivery technologies.
Key Customers
- Patients with Duchenne muscular dystrophy (DMD).
- Patients with cystic fibrosis.
- Patients with dysferlinopathy.
- Patients with tuberculosis.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $706,000 | -$32M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Catabasis Pharmaceuticals, Inc. (CATB) stock price: $8.54 (-0.64, -6.97%)
Why Bull
- •Recent insider buying suggests confidence in CATB's future prospects, indicating that those closest to the company believe in its potential.
- •Community sentiment has shifted positively, with discussions around upcoming product launches generating excitement among investors.
- •Analysts have noted improvements in the company's operational efficiency, which could lead to better margins and profitability in the near term.
- •The market perception is increasingly optimistic as CATB has secured key partnerships that could enhance its market position and drive growth.
Why Bear
- •Despite the positive sentiment, some investors remain cautious due to CATB's history of volatility, which could deter new investors.
- •Recent social media chatter includes concerns about competition in the sector, leading to fears that CATB may struggle to maintain its market share.
- •There are lingering doubts about the scalability of CATB's business model, with some community members questioning its long-term sustainability.
- •Market developments have raised red flags regarding regulatory challenges that could impact CATB's operations and growth trajectory.
Latest News
-
Stocks That Hit 52-Week Highs On Wednesday
· Aug 25, 2021
-
68 Biggest Movers From Yesterday
· Dec 4, 2020
-
Stocks Which Set New 52-Week Low Yesterday, Tues., Nov. 20, 2018
· Nov 21, 2018
Technical Analysis
Rationale
AI-generated technical analysis for CATB including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
Share your analysis and discuss Catabasis Pharmaceuticals, Inc. (CATB) with other investors. Log in to post.
Sentiment
Community sentiment and discussion activity for CATB.
Make a Prediction
Set your price target for Catabasis Pharmaceuticals, Inc. (CATB), choose a timeframe, and track your prediction accuracy.
Current price: $8.54
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CATB.
Price Targets
Wall Street price target analysis for CATB.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
-
Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
-
Gross Margin 5/100
Gross margin data is currently unavailable for this company.
-
Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
-
Cash Runway 5/100
Cash position data is currently unavailable for this company.
-
R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
-
Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
-
Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
-
Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
-
News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates CATB's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Catabasis Pharmaceuticals, Inc. do?
Catabasis Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing novel therapeutics for rare diseases. Their lead product candidate, edasalonexent, is in Phase III clinical trials for the treatment of Duchenne muscular dystrophy (DMD). They are also developing CAT-5571 for cystic fibrosis and tuberculosis. The company collaborates with organizations like the Jain Foundation and the Bill & Melinda Gates Medical Research Institute to advance their research and development efforts. Catabasis aims to address unmet medical needs in these rare disease areas through innovative drug development.
Is CATB stock a good buy?
Evaluating CATB requires careful consideration of its clinical pipeline and financial position. The success of edasalonexent's Phase III trial is critical. A positive outcome could significantly increase the stock's value, given the unmet need in the DMD market. However, the company's negative profit margin of -13938.2% indicates substantial financial risk. Investors should weigh the potential for high returns against the inherent risks associated with clinical-stage biopharmaceutical companies before investing.
What are the main risks for CATB?
The primary risks for Catabasis Pharmaceuticals include the potential failure of clinical trials, particularly the Phase III trial for edasalonexent. Regulatory hurdles and competition from other companies developing treatments for DMD and cystic fibrosis also pose significant risks. Additionally, the company's financial stability is a concern, given its negative profit margin and dependence on raising capital to fund its operations. Any adverse events or setbacks in clinical development could negatively impact the company's stock price and future prospects.
Is CATB a good stock to buy?
Whether CATB is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the CATB MoonshotScore?
The MoonshotScore for CATB is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is CATB data updated?
CATB stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to CATB is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for CATB?
Growth catalysts for Catabasis Pharmaceuticals, Inc. (CATB) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Catabasis Pharmaceuticals, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are CATB's main competitors?
Catabasis Pharmaceuticals, Inc. (CATB) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether CATB has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about CATB?
Wall Street analyst coverage for CATB includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is CATB's market cap?
Market capitalization (market cap) for CATB is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows CATB's current market cap alongside enterprise value and other valuation metrics.
How has CATB stock performed recently?
CATB's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing CATB's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in CATB?
Key risk categories for CATB include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures CATB's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling CATB?
Insider trading activity for CATB tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is CATB a good stock for beginners?
Catabasis Pharmaceuticals, Inc. (CATB) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is CATB for first-time investors?
Every stock carries risk, including Catabasis Pharmaceuticals, Inc. (CATB). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like CATB.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Investment decisions should be made based on individual risk tolerance and due diligence.