Catalyst Pharma (CPRX) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.87
• Revenue Growth: 28.55%
• EPS Growth: 196.96%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): 0.41
• Shares Outstanding: 122,391,010
• 10 Day Avg. Volume: 1,298,431
• 30 Day Avg. Volume: 1,403,936
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 7.71
• 1Y Price Target: $33.00
• Price Target Upside: 63.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $23.00 ▲(13.92% Upside)

Catalyst Pharma's strong financial performance and strategic initiatives are key strengths, supported by recent corporate developments. However, technical indicators suggest caution, and uncertainties in patent litigation and product competition pose risks.

Positive Factors

Commercial Business Performance

Catalyst's commercial business remains robust with total product revenues exceeding consensus expectations.

Guideline Inclusion

The inclusion of VGCC antibody testing and the recommendation that amifampridine (Firdapse) should be considered as a treatment for SCLC patients with LEMS in the NCCN guidelines further strengthens CPRX's efforts to accelerate diagnosis and drive Firdapse adoption in oncology.

Revenue Guidance

The company reaffirmed its full-year 2025 revenue guidance which calls for 13% Y/Y growth at the mid-point.

Negative Factors

Future Decline

The franchise is expected to decline more meaningfully in 2026 as generic availability expands.

Generic Competition

Management flagged risk of additional generics as rationale for conservative FY25 guide.

Revenue Miss

Firdapse revenue missed consensus due to underestimated impact from insurance claims disruption.

Catalyst Pharma Business Overview & Revenue Model

Company Description

Catalyst Pharmaceuticals, Inc. (CPRX) is a biopharmaceutical company focused on developing innovative therapies for people with rare neurological diseases. The company primarily operates in the pharmaceutical sector and is known for its flagship product, Firdapse (amifampridine), which is approved for the treatment of Lambert-Eaton Myasthenic Syndrome (LEMS) and is being explored for other rare conditions. Catalyst Pharma aims to address unmet medical needs through its specialized drug development and commercialization efforts.

How the Company Makes Money

Catalyst Pharmaceuticals generates revenue primarily through the sales of its marketed product, Firdapse. The company employs a direct sales model, targeting healthcare providers and institutions that treat patients with rare neurological conditions. Additionally, Catalyst may explore licensing agreements or partnerships with other pharmaceutical companies to expand its product offerings or enhance its market reach. The company's revenue is also influenced by the pricing strategy of its products, market demand, and the regulatory landscape surrounding rare disease treatments.

Catalyst Pharma Financial Statement Overview

Summary

Catalyst Pharma's financial statements reflect strong revenue growth and robust margins. The balance sheet is solid, characterized by low leverage and high liquidity, supporting financial stability. The cash flow statement shows strong cash generation, though past volatility in free cash flow should be monitored. Overall, the company is well-positioned financially, with potential for continued growth and profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	558.50M	491.73M	398.20M	214.20M	140.83M	119.07M
Gross Profit	469.71M	422.89M	313.67M	179.81M	118.95M	102.03M
EBITDA	274.79M	232.90M	119.69M	101.84M	52.38M	41.30M
Net Income	208.66M	163.89M	71.41M	83.08M	39.48M	74.98M
Balance Sheet
Total Assets	971.91M	851.41M	470.11M	375.63M	237.79M	192.35M
Cash, Cash Equivalents and Short-Term Investments	652.80M	517.55M	137.64M	298.39M	191.27M	140.28M
Total Debt	2.99M	3.19M	3.56M	3.89M	3.89M	28.77K
Total Liabilities	115.89M	123.78M	82.23M	75.21M	30.96M	22.76M
Stockholders Equity	856.03M	727.63M	387.88M	300.42M	206.83M	169.60M
Cash Flow
Free Cash Flow	274.72M	239.25M	-54.92M	116.02M	59.35M	45.02M
Operating Cash Flow	275.09M	239.81M	143.60M	116.05M	60.37M	45.03M
Investing Cash Flow	-373.00K	-556.00K	-293.50M	9.21M	-11.02M	-5.01M
Financing Cash Flow	2.39M	140.66M	-10.86M	1.69M	-8.14M	701.93K

Catalyst Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 20.19 is below the 20-day moving average (MA) of 20.57, below the 50-day MA of 21.14, and below the 200-day MA of 22.40, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 21.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPRX.

Catalyst Pharma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPRX	75 Outperform	$2.44B	12.10	28.49%	―	28.55%	196.96%
ACAD	73 Outperform	$4.34B	19.33	33.18%	―	14.41%	627.78%
MRUS	62 Neutral	$5.06B	―	-48.54%	―	59.77%	-92.92%
RYTM	55 Neutral	$6.72B	―	-1334.54%	―	53.55%	30.87%
RARE	54 Neutral	$2.85B	―	-182.60%	―	26.77%	24.18%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
CRSP	46 Neutral	$4.99B	―	-25.34%	―	-81.18%	-69.19%

Catalyst Pharma Corporate Events

Catalyst Pharma Settles Patent Dispute with Lupin

On August 25, 2025, Catalyst Pharmaceuticals and its licensor SERB S.A. announced a settlement agreement with Lupin Ltd. and Lupin Pharmaceuticals, resolving patent litigation over Lupin’s attempt to market a generic version of FIRDAPSE® before the expiration of its patents. Under the agreement, Lupin will not market its generic version in the U.S. before February 25, 2035, pending FDA approval, and all ongoing litigation between the parties will be terminated. Catalyst has previously settled similar litigation with other companies, but ongoing litigation with Hetero remains unresolved.

Catalyst Pharma Updates Guidelines for SCLC Treatment

On August 6, 2025, Catalyst Pharmaceuticals announced that the National Comprehensive Cancer Network Clinical Practice Guidelines for Small Cell Lung Cancer now include Lambert Eaton myasthenic syndrome (LEMS), amifampridine, and tests for voltage-gated calcium channel antibodies. This update aims to improve diagnosis and treatment of LEMS in SCLC patients, potentially enhancing patient outcomes by raising clinical awareness and promoting comprehensive neurological evaluations.

Catalyst Pharma Reports Record Q2 2025 Financial Results

On August 6, 2025, Catalyst Pharmaceuticals reported record financial results for the second quarter and first half of 2025, with total revenues reaching $146.6 million in Q2, marking a 19.4% year-over-year increase. The company highlighted strong performance across its product portfolio, particularly noting AGAMREE’s significant growth following its 2024 launch, while FYCOMPA faced a slight revenue decline due to generic competition. Catalyst’s robust cash position and reaffirmed revenue guidance reflect its strategic execution and sustained demand, positioning it well for future growth.

Catalyst Pharma Appoints Dr. Curran to Board

On August 4, 2025, Catalyst Pharmaceuticals announced the appointment of Dr. Daniel J. Curran to its Board of Directors, expanding the board from six to seven members. Dr. Curran brings over 25 years of experience in the pharmaceutical industry, with expertise in strategy, business development, and rare disease therapies. His appointment is expected to bolster Catalyst’s growth strategy, focusing on maximizing its rare disease portfolio and acquiring strategically aligned assets.

Catalyst Pharma Appoints New Chief Medical Officer

On June 1, 2025, Catalyst Pharmaceuticals announced the retirement of its Chief Medical and Regulatory Officer, Dr. Gary Ingenito, who will continue as a consultant to aid in the transition. Dr. William Andrews was appointed as the new Chief Medical Officer on June 2, 2025, bringing 25 years of global biopharmaceutical experience, particularly in rare diseases, to the company. Dr. Andrews’s extensive background includes leadership roles in clinical development, medical affairs, and business development, positioning Catalyst to continue its growth and success in the biopharmaceutical industry.