Catalyst Pharma (CPRX) AI Stock Analysis

• Market Cap: $2.96B
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.64
• Revenue Growth: 25.56%
• EPS Growth: 44.42%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.41
• Shares Outstanding: 122,123,886
• 10 Day Avg. Volume: 1,434,650
• 30 Day Avg. Volume: 1,221,424
• PEG Ratio: 0.50
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 4.85
• P/FCF Ratio: 13.68
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 3.86
• Enterprise Value/Gross Profit: 4.53
• Enterprise Value/Ebitda: 7.26
• 1Y Price Target: $34.50
• Price Target Upside: 42.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.84
• Revenue Forecast (FY): $629.83M

• Rating: 84 Outperform
• Price Target: $29.00 ▲(19.64% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (rapid revenue scaling, high profitability, low leverage, and solid cash generation) and a constructive earnings outlook supported by 2026 revenue guidance and strong product momentum. Technicals add support via an ongoing uptrend, while valuation appears reasonable on earnings but is tempered by no dividend and acknowledged business risks (FYCOMPA decline, litigation, and gross-to-net/cost pressures).

Positive Factors

Conservative balance sheet

Catalyst maintains minimal funded debt and scaled equity/assets, producing strong returns on equity (~18%–44%). Low leverage provides durable financial flexibility to fund commercial investment, M&A or adverse scenarios without near-term refinancing risk, supporting multi‑year resilience.

Strong cash generation

Operating cash flow generally exceeds net income and free cash flow has been consistently positive, supporting organic R&D, lifecycle programs and BD without heavy external financing. That high cash conversion underpins sustainable reinvestment and optionality over the next several years.

Durable commercial momentum

FIRDAPSE shows steady double‑digit growth and AGAMREE scaled rapidly after launch (100% top DMD centers adoption), indicating strong commercial execution, durable demand and successful patient identification programs. This product mix growth supports revenue visibility and longer‑term portfolio resilience.

Negative Factors

FYCOMPA revenue erosion

Loss of exclusivity on FYCOMPA materially reduces revenue diversification and increases reliance on FIRDAPSE and AGAMREE. The expected multi‑year decline narrows commercial buffers and heightens sensitivity to execution and reimbursement trends for the remaining franchise.

Ongoing patent litigation risk

Unresolved litigation creates meaningful uncertainty around IP exclusivity that could enable generic entry or limit pricing power. A negative outcome would be structural, shortening protected revenue windows and potentially accelerating market share decline for affected products.

Structural margin pressure

Rising royalties, milestone obligations and higher SG&A are compressing gross and operating margins. Coupled with management's note that IRA‑driven gross‑to‑net impacts will grow annually, these factors create ongoing headwinds to net realized revenue and long‑term margin sustainability.

Catalyst Pharma Business Overview & Revenue Model

Company Description

Catalyst Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the United States. It offers Firdapse, an amifampridine phosphate tablets for the treatment of patients with lambert-eaton myasthenic syndrome (LEMS); and Ruzurgi for the treatment of pediatric LEMS patients. The company also develops Firdapse for the treatment of MuSK antibody positive myasthenia gravis, and spinal muscular atrophy type 3, as well as to treat hereditary neuropathy with liability to pressure palsies. It has license agreements with BioMarin Pharmaceutical Inc.; and collaboration and license agreement with Endo Ventures Limited for the development and commercialization of generic Sabril tablets. The company was formerly known as Catalyst Pharmaceutical Partners, Inc. and changed its name to Catalyst Pharmaceuticals, Inc. in May 2015. Catalyst Pharmaceuticals, Inc. was founded in 2002 and is based in Coral Gables, Florida.

How the Company Makes Money

Catalyst Pharmaceuticals generates revenue primarily through the sales of its approved drug, Firdapse. The company employs a direct-to-consumer sales model, leveraging a specialized sales force to reach healthcare providers and patients. Key revenue streams include prescription sales, which are bolstered by the drug's unique position in the market for rare diseases. Additionally, Catalyst may explore partnerships and collaborations with other pharmaceutical companies to enhance its product offerings or expand its market reach, contributing to revenue through licensing agreements or co-promotional arrangements. The company's focus on rare diseases allows for potentially higher pricing power due to the limited availability of alternative treatments.

Catalyst Pharma Financial Statement Overview

Summary

Strong multi-year revenue expansion and robust profitability, supported by conservative leverage (minimal debt) and generally solid cash conversion. Main offsets are year-to-year margin/cash flow variability and an apparent 2025 gross profit/margin reporting inconsistency that reduces latest-period operating visibility.

Income Statement

Revenue growth has been very strong over the period (from ~$119M in 2020 to ~$589M in 2025), including a particularly large step-up in 2025. Profitability is also robust, with net margins generally healthy (about ~18% to ~63%) and 2024–2025 net income rising meaningfully. The main weakness is volatility in profitability metrics year-to-year (notably net margin swinging from very high in 2020 to lower in 2023), and 2025 gross profit/margin and EBIT margin are shown as 0, which looks like a data/reporting inconsistency that limits margin quality assessment for the most recent year.

Balance Sheet

The balance sheet appears exceptionally conservative: total debt is minimal versus equity across all years (debt-to-equity consistently near zero), while equity and assets have scaled substantially alongside earnings growth. Returns on equity are strong (roughly ~18% to ~44%), indicating good profitability relative to the capital base. A key watch-out is that rapid equity growth can dilute future return metrics if earnings don’t keep pace, but current leverage and solvency risk appear very low based on the provided data.

Cash Flow

Cash generation is strong, with operating cash flow increasing materially over time and typically exceeding net income (cash flow to net income generally >1), suggesting earnings are well-supported by cash. Free cash flow is also consistently positive and, in multiple years, nearly matches net income (near 1:1 conversion). The main weakness is variability in free cash flow growth (notably a sizable decline in 2025 after a stronger 2024), and 2023 shows weaker free cash flow conversion versus net income compared with other years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	588.99M	491.73M	398.20M	214.20M	140.83M
Gross Profit	501.74M	422.89M	346.24M	179.81M	118.95M
EBITDA	321.01M	232.90M	119.69M	103.08M	52.58M
Net Income	214.33M	163.89M	71.41M	83.08M	39.48M
Balance Sheet
Total Assets	1.11B	851.41M	470.11M	375.63M	237.79M
Cash, Cash Equivalents and Short-Term Investments	709.17M	517.55M	137.64M	298.39M	191.27M
Total Debt	2.79M	3.19M	3.56M	3.89M	4.20M
Total Liabilities	152.54M	123.78M	82.23M	75.21M	30.96M
Stockholders Equity	954.27M	727.63M	387.88M	300.42M	206.83M
Cash Flow
Free Cash Flow	208.61M	239.25M	61.86M	116.02M	59.35M
Operating Cash Flow	208.67M	239.81M	143.60M	116.05M	60.37M
Investing Cash Flow	-58.00K	-556.00K	-293.50M	9.21M	-11.02M
Financing Cash Flow	-16.99M	140.66M	-10.86M	1.69M	-8.14M

Catalyst Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRX, the sentiment is Positive. The current price of 24.24 is below the 20-day moving average (MA) of 24.24, above the 50-day MA of 23.91, and above the 200-day MA of 22.33, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 74.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPRX.

Catalyst Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPRX	84 Outperform	$2.96B	13.32	25.49%	―	25.56%	44.42%
FOLD	62 Neutral	$4.50B	-161.97	-11.58%	―	21.28%	87.30%
IBRX	60 Neutral	$8.91B	-5.18	―	―	1025.95%	52.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LQDA	49 Neutral	$3.17B	-43.06	-112.97%	―	343.41%	11.91%
OCUL	48 Neutral	$2.24B	-8.55	-54.85%	―	-9.21%	-8.84%
TVTX	47 Neutral	$2.52B	―	-57.80%	―	114.22%	77.02%

Catalyst Pharma Corporate Events

Catalyst Pharma Posts Record 2025 Results, Raises 2026 Outlook

On February 26, 2026, Catalyst Pharmaceuticals reported record fourth-quarter and full-year 2025 results, with total 2025 revenues rising 19.8% year-on-year to $589.0 million and GAAP net income up 30.8% to $214.3 million. Growth was driven by FIRDAPSE, which increased 17.1% to $358.4 million, and AGAMREE, whose full-year revenue surged to $117.1 million following its March 2024 launch, while FYCOMPA revenue softened amid generic competition.

Fourth-quarter 2025 revenues reached $152.6 million, with AGAMREE up 67.5% and FIRDAPSE up 18.3% year-on-year, underscoring accelerating adoption of the company’s promoted products. Catalyst ended 2025 with $709.2 million in cash and guided 2026 total revenues to a range of $615 million to $645 million, signaling confidence in the durability of FIRDAPSE and AGAMREE, supported by favorable treatment guidelines, ongoing patent litigation management, and a strategy focused on lifecycle expansion and business development.

The most recent analyst rating on (CPRX) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Catalyst Pharma stock, see the CPRX Stock Forecast page.

Catalyst Pharma Highlights Growth Strategy at J.P. Morgan Conference

On January 12, 2026, Catalyst Pharmaceuticals outlined its growth strategy and operating profile at the 44th Annual J.P. Morgan Healthcare Conference, emphasizing its status as a profitable rare disease therapeutics player with seven consecutive years of profitability through year-end 2024 and expected continued profitability in 2025. Management highlighted double-digit annual revenue growth, more than $700 million in cash and cash equivalents with no funded debt as of year-end 2025, and over $1 billion of capacity earmarked for additional transactions, positioning the company to pursue accretive acquisitions of commercial and late-stage rare disease assets. The presentation detailed strong prescription compliance above 90% for Firdapse and Agamree, a U.S. LEMS market estimated at over $1 billion with roughly 3,600 currently identified patients and a potential prevalence of up to 5,400, and a DMD market of 11,000–13,000 U.S. patients where steroids remain standard of care, underscoring Catalyst’s focus on expanding market penetration through diagnostics, clinical guideline integration, and patient-support infrastructure to sustain its growth trajectory in the rare disease segment.

The most recent analyst rating on (CPRX) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Catalyst Pharma stock, see the CPRX Stock Forecast page.