Here’s a press release you don’t want to have to send

Yesterday, with its share price down as much as 18%, Catalyst Pharmaceuticals hit send on a press release saying it “is not aware of any information about the company's activities that has not been reported” that would explain the crashing stock. Later, Catalyst reassured investors that it had “sufficient resources for its current activities for at least the next 12 months.”

Specifically, it had about $23 million in cash as of June 30. In the second quarter, Catalyst made an $11 million profit, suggesting, as management said, that it’s in perfectly solid financial health.

However, as STAT’s Ed Silverman points out, Catalyst is not like most drug makers. The company’s sole approved product, a rare disease drug that costs $375,000 a year, is suddenly facing off-label competition from a much cheaper alternative, a development that could make profitable quarters a thing of the past for Catalyst. And while that $23 million may in fact last “for at least the next 12 months,” investors could be worried that the company’s longer-term plans might involve red numbers.