Catalyst Pharma (CPRX) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.66
• Revenue Growth: 25.56%
• EPS Growth: 44.42%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.42
• Shares Outstanding: 122,912,384
• 10 Day Avg. Volume: 1,166,336
• 30 Day Avg. Volume: 1,202,663
• PEG Ratio: 0.14
• Price to Book (P/B): 3.40
• Price to Sales (P/S): 5.03
• P/FCF Ratio: 10.33
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: 5.68
• 1Y Price Target: $34.00
• Price Target Upside: 46.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.76
• Revenue Forecast (FY): $615.30M

• Rating: 74 Outperform
• Price Target: $25.00 ▲(7.90% Upside)

The score is driven primarily by strong financial quality (high margins, meaningful multi-year revenue growth, and minimal leverage) and supportive earnings-call signals (record quarter and raised guidance). These positives are tempered by weak near-term technical momentum (price below key moving averages with negative MACD) and identifiable business risks noted on the call (generic pressure on FYCOMPA and ongoing patent litigation).

Positive Factors

Multi-year Revenue Growth & High Margins

Sustained multi-year revenue expansion combined with very high gross margins reflects durable pricing power and product leverage in rare-disease niches. This scale supports reinvestment in commercialization, predictable cash conversion, and long-term margin sustainability versus typical biotech swings.

Extremely Conservative Balance Sheet and Cash Runway

A near-zero leverage profile and large cash balance provide strategic optionality: ability to fund commercialization, absorb litigation costs, pursue accretive M&A, and withstand product-specific setbacks. This financial flexibility materially reduces refinancing and solvency risk.

Strong Rare-Disease Market Position and Patient Retention

Owning the sole evidence-based LEMS therapy and high patient retention for newer products builds durable competitive advantage. Deep patient/provider relationships and specialty sales infrastructure sustain pricing, adherence, and steady revenue in concentrated rare-disease markets over the medium term.

Negative Factors

Generic Competition Eroding FYCOMPA Revenue

Ongoing generic entry is structurally reducing revenue from FYCOMPA, shrinking product diversification and forcing reliance on flagship drugs. Continued erosion is likely over coming quarters, pressuring aggregate growth and requiring sustained offsetting gains from other products or new launches.

FIRDAPSE Patent Litigation Risk

Pending litigation on the company’s core product creates a material structural risk to exclusivity and long-term revenues. An adverse outcome could enable earlier generic entry or settlements that reduce pricing power, undermining the primary revenue engine and margin profile.

Volatility in Cash Flow and Operating Profitability

Despite strong aggregate cash generation, recent FCF decline and prior swings in EBIT margins indicate operational sensitivity to product mix, COGS, or commercialization investments. This variability can constrain predictable reinvestment and makes multi-quarter forecasting and capital allocation less certain.

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 profitability and scale-up: revenue grew from $119M (2020) to $492M (2024) and $578M (TTM) with very high gross margins (~79%–86%) and improving net margins (~33% in 2024; ~38% TTM). Balance sheet is exceptionally conservative (debt-to-equity ~0.003) with growing equity, while cash generation is solid (FCF ~$235M TTM) but shows a recent decline (~14.6% TTM) and some historical volatility in operating profitability.

Income Statement

CPRX shows strong operating performance and profitability. Revenue expanded meaningfully from $119M (2020) to $492M (2024) and $578M in TTM (Trailing-Twelve-Months), supported by consistently high gross margins (~79%–86%). Profitability improved sharply after 2023, with net margin rising from ~18% (2023) to ~33% (2024) and ~38% in TTM (Trailing-Twelve-Months). A key watch item is volatility in operating profitability over time (EBIT margin was ~49% in 2022, dipped to ~22% in 2023, then recovered to ~40% in 2024 and ~34% in TTM).

Balance Sheet

The balance sheet is exceptionally conservative with minimal leverage: total debt is ~$2.9M in TTM (Trailing-Twelve-Months) against ~$920M of equity (debt-to-equity ~0.003). Equity and assets have scaled substantially over the period (equity from ~$170M in 2020 to ~$728M in 2024 and ~$920M in TTM), indicating strong retained earnings accumulation. Returns on equity are solid (low-to-mid 20% range recently), though they are lower than the unusually high level seen in 2020, suggesting profitability is strong but not as outsized as that earlier period.

Cash Flow

Cash generation is strong and generally tracks profits well: operating cash flow is ~$235M in TTM (Trailing-Twelve-Months) and free cash flow is ~$235M, with free cash flow roughly matching net income in both 2024 and TTM. Operating cash flow also comfortably exceeds net income (coverage ~1.8–2.2x historically), supporting earnings quality. The main weakness is recent momentum—free cash flow declined ~14.6% in TTM (Trailing-Twelve-Months)—and there was a notable mismatch in 2023 when free cash flow did not translate in line with reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	578.20M	491.73M	398.20M	214.20M	140.83M	119.07M
Gross Profit	483.37M	422.89M	346.24M	179.81M	118.95M	102.03M
EBITDA	304.33M	232.90M	119.69M	103.08M	52.58M	41.40M
Net Income	217.56M	163.89M	71.41M	83.08M	39.48M	74.98M
Balance Sheet
Total Assets	1.05B	851.41M	470.11M	375.63M	237.79M	192.35M
Cash, Cash Equivalents and Short-Term Investments	689.89M	517.55M	137.64M	298.39M	191.27M	140.28M
Total Debt	2.89M	3.19M	3.56M	3.89M	4.20M	29.00K
Total Liabilities	131.36M	123.78M	82.23M	75.21M	30.96M	22.76M
Stockholders Equity	920.25M	727.63M	387.88M	300.42M	206.83M	169.60M
Cash Flow
Free Cash Flow	234.54M	239.25M	61.86M	116.02M	59.35M	45.02M
Operating Cash Flow	234.66M	239.81M	143.60M	116.05M	60.37M	45.03M
Investing Cash Flow	-114.00K	-556.00K	-293.50M	9.21M	-11.02M	-5.01M
Financing Cash Flow	13.02M	140.66M	-10.86M	1.69M	-8.14M	701.93K

Catalyst Pharma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.17
• 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 23.17 is below the 20-day moving average (MA) of 23.45, above the 50-day MA of 23.02, and above the 200-day MA of 22.17, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 46.63 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	74 Outperform	$2.85B	13.52	27.52%	―	25.56%	44.42%
FOLD	73 Outperform	$4.45B	-321.70	-6.87%	―	21.28%	87.30%
TVTX	56 Neutral	$2.59B	-26.67	-410.78%	―	114.22%	77.02%
LQDA	54 Neutral	$3.48B	-27.96	-183.82%	―	343.41%	11.91%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OCUL	49 Neutral	$2.36B	-7.71	-81.83%	―	-9.21%	-8.84%
IBRX	49 Neutral	$2.97B	-7.18	―	―	1025.95%	52.91%

Catalyst Pharma Corporate Events

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.

Catalyst Pharma Reports Strong Q3 2025 Financial Results

Catalyst Pharmaceuticals reported strong financial results for the third quarter of 2025, with total revenues of $148.4 million, driven by the growth of FIRDAPSE® and AGAMREE®. The company raised its full-year revenue guidance to between $565 million and $585 million, reflecting better-than-expected performance. Despite a decline in FYCOMPA® revenue due to generic competition, the company remains confident in its growth trajectory, as evidenced by a new $200 million share repurchase program. Additionally, Catalyst settled a patent litigation case with Lupin Ltd., allowing the marketing of generic FIRDAPSE beginning in February 2035.

The most recent analyst rating on (CPRX) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Catalyst Pharma stock, see the CPRX Stock Forecast page.