Catalyst Pharma (CPRX) AI Stock Analysis

• Market Cap: $2.93B
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 17.6
• Beta (1Y): 1.09
• Revenue Growth: 23.49%
• EPS Growth: 104.96%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 79
• Industry: Biotechnology
• EPS (TTM): 1.31
• Shares Outstanding: 121,449,650
• 10 Day Avg. Volume: 1,807,651
• 30 Day Avg. Volume: 1,452,396
• PEG Ratio: 0.17
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.98
• Price to Cash Flow (P/CF): 10.40
• P/FCF Ratio: 10.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $33.83
• Price Target Upside: 46.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Catalyst Pharma demonstrates strong financial performance with significant growth and profitability, a solid balance sheet, and strong cash flow. Technical analysis presents mixed signals, while the valuation appears reasonable. The earnings call provided positive guidance, though there are concerns about FYCOMPA's revenue decline and increased expenses. The company is well-positioned for growth, particularly in the rare diseases sector.

Positive Factors

Litigation Outcome

Catalyst is well-positioned for favorable outcomes in the unresolved litigation with Hetero and Lupin, and the Firdapse patents are expected to be upheld.

Market Strategy

Strong penetration into the DMD market with a significant percentage of switches from prednisone and new enrollments from Emflaza.

Revenue Growth

Catalyst has delivered consistent double-digit year-over-year growth in Firdapse revenues.

Negative Factors

Generic Competition

Fycompa sales are likely to be negatively impacted this year by generic entry in May.

Patent Litigation

The trend of historical precedent suggests that when one first filer settles or is defeated, the others often follow suit within a reasonable timeframe.

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 sale of its FDA-approved drug, Firdapse, which treats Lambert-Eaton Myasthenic Syndrome (LEMS), a rare autoimmune disorder. The company earns money by selling this product directly to patients through specialty pharmacies and by working with healthcare providers to ensure the availability of the medication to those in need. Additionally, Catalyst Pharma seeks to expand its revenue streams by developing and commercializing additional therapies for other rare diseases, which could include partnerships or collaborations with other pharmaceutical companies to enhance its product offerings and market reach. These strategic efforts allow Catalyst to maintain and potentially grow its sales and market presence in the orphan drug sector.

Catalyst Pharma Financial Statement Overview

Summary

Catalyst Pharma's financial performance is strong, with impressive revenue growth and profitability. The income statement shows 23.4% revenue growth and improved margins. The balance sheet is robust with low leverage and high liquidity. Cash flow is strong, despite past volatility.

Income Statement

Catalyst Pharma has demonstrated strong revenue growth, with a significant increase in total revenue from $398.2 million in 2023 to $491.7 million in 2024, marking a growth rate of approximately 23.4%. The company maintains a high gross profit margin of 100% due to its cost structure. The net profit margin improved from 17.9% in 2023 to 33.3% in 2024, indicating enhanced profitability. The EBIT and EBITDA margins are robust at 39.7%, showcasing efficient operational performance. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

Catalyst Pharma exhibits a strong balance sheet with a low debt-to-equity ratio of 0.004, reflecting minimal leverage. The return on equity (ROE) is impressive at 22.5%, indicating effective use of equity capital to generate profits. The equity ratio is robust at 85.5%, demonstrating a solid equity base relative to total assets. The company's financial stability is reinforced by substantial cash and short-term investments, significantly exceeding its total debt, contributing to a healthy liquidity position.

Cash Flow

The company has shown strong cash flow generation with a significant increase in free cash flow from -$54.9 million in 2023 to $143.4 million in 2024. The operating cash flow to net income ratio is 0.88, indicating efficient cash conversion from net income. The free cash flow to net income ratio is 0.88, suggesting a strong ability to generate cash relative to earnings. However, the lack of positive free cash flow growth in previous years indicates potential volatility in cash flow generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
491.73M	398.20M	214.20M	140.83M	119.07M
	Gross Profit
422.89M	313.67M	179.81M	118.95M	102.03M
	EBIT
195.12M	86.81M	101.84M	52.38M	41.30M
	EBITDA
195.12M	119.69M	101.84M	52.38M	41.30M
	Net Income Common Stockholders
163.89M	71.41M	83.08M	39.48M	74.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
517.55M	137.64M	298.39M	191.27M	140.28M
	Total Assets
851.41M	470.11M	375.63M	237.79M	192.35M
	Total Debt
2.79M	3.56M	3.89M	3.89M	28.77K
	Net Debt
-514.77M	-134.08M	-294.50M	-167.55M	-130.21M
	Total Liabilities
123.78M	82.23M	75.21M	30.96M	22.76M
	Stockholders Equity
727.63M	387.88M	300.42M	206.83M	169.60M
Cash Flow		Free Cash Flow
143.37M	-54.92M	116.02M	59.35M	45.02M
	Operating Cash Flow
143.60M	143.60M	116.05M	60.37M	45.03M
	Investing Cash Flow
-293.50M	-293.50M	9.21M	-11.02M	-5.01M
	Financing Cash Flow
-10.86M	-10.86M	1.69M	-8.14M	701.93K

Catalyst Pharma Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPRX, the sentiment is Neutral. The current price of 23.07 is below the 20-day moving average (MA) of 23.23, above the 50-day MA of 22.76, and above the 200-day MA of 20.65, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 55.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPRX.

Catalyst Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPRX	79 Outperform	$2.93B	17.63	29.38%	―	23.49%	104.96%
REGN	78 Outperform	$67.45B	16.09	15.95%	0.14%	8.27%	10.35%
BMRN	78 Outperform	$12.87B	30.68	8.05%	―	17.35%	151.40%
AMGN	75 Outperform	$166.45B	40.98	67.55%	2.95%	18.64%	-39.39%
VRTX	64 Neutral	$124.29B	―	-3.15%	―	11.64%	-114.72%
RARE	54 Neutral	$3.30B	―	-214.50%	―	29.01%	23.93%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%

Catalyst Pharma Corporate Events

Catalyst Pharma Announces Board Member’s Departure

On January 17, 2025, Charles B. O’Keeffe, an independent member of the Board of Directors of Catalyst Pharmaceuticals, announced he would not seek reelection at the 2025 annual stockholders’ meeting, concluding his long-standing service on the Board since 2004. His decision was not due to any disagreement with the company. The company plans to hire a recruitment firm to find a new director, marking a significant transition in its leadership structure.

Catalyst Pharma Highlights Growth in Rare Diseases Sector

Catalyst Pharmaceuticals has released a corporate presentation that outlines their strategic focus on rare diseases, particularly through their flagship product FIRDAPSE for Lambert Eaton myasthenic syndrome (LEMS) and the novel corticosteroid AGAMREE for Duchenne Muscular Dystrophy (DMD). The presentation highlights the company’s growth strategy, market opportunities, and patient-centric initiatives, showcasing their strong financial performance and future potential in expanding patient access and market penetration in these niche therapeutic areas.