NEW YORK (TheStreet) -- Shares of Catalyst Pharmaceuticals (CPRX) were spiking 35.71% to $1.52 on heavy trading volume early Wednesday afternoon as Piper Jaffray upgraded the stock to "overweight" from "neutral."

The firm also raised its price target to $4 from $1 on shares of the Coral Gables, FL-based biopharmaceutical company.

Piper expects lower clinical risk for the company's investigational drug candidate Firdapse due to the finalized design of its second Phase III trial set to start this quarter, the Fly reports.

Firdapse is being investigated for the treatment of Lambert Eaton myasthenic syndrome (LEMS), which is an autoimmune disease. 

Additionally, the firm believes regulatory risk has been eased due to close interaction with the FDA on the study's design.

Piper said the program will "soon be back on track and poised for 2017 value creation," according to a note cited by the Fly.

More than 11.83 million of the company's shares changed hands so far today vs. its average 30-day volume of 848,516 shares per day.

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