Catalyst Pharma (CPRX) AI Stock Analysis

• Market Cap: $2.77B
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.72
• 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: 945,531
• 30 Day Avg. Volume: 1,277,118
• 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: 0.66
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 3.76
• Enterprise Value/Ebitda: 5.97
• 1Y Price Target: $34.00
• Price Target Upside: 49.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.55
• Revenue Forecast (FY): $575.01M

• Rating: 83 Outperform
• Price Target: $27.00 ▲(18.42% Upside)

Catalyst Pharma's strong financial performance and raised revenue guidance are the most significant factors driving the score. The company's solid technical indicators and reasonable valuation further support a positive outlook. While challenges such as FYCOMPA's revenue decline exist, the overall financial health and strategic initiatives position the company well for future growth.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand for Catalyst's products, enhancing its competitive position in the rare disease sector.

Cash Position

A robust cash position with no debt provides financial flexibility for strategic investments and resilience against market fluctuations.

Product Performance

FIRDAPSE's strong performance underscores its critical role in Catalyst's portfolio, supporting sustained revenue and market leadership in rare diseases.

Negative Factors

Patent Litigation

Ongoing patent litigation poses a risk to Catalyst's revenue streams and market exclusivity, potentially impacting long-term profitability.

FYCOMPA Revenue Decline

The decline in FYCOMPA revenue due to generic competition highlights vulnerability in Catalyst's product portfolio, affecting overall revenue stability.

Cash Flow Volatility

Volatility in cash flow generation can impact Catalyst's ability to fund operations and strategic initiatives, affecting long-term financial health.

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

Catalyst Pharma demonstrates strong financial performance with impressive 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.

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	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: 22.80
• 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 22.8 is below the 20-day moving average (MA) of 23.01, above the 50-day MA of 21.83, and above the 200-day MA of 22.08, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 31.80 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	83 Outperform	$2.77B	13.30	27.52%	―	25.56%	44.42%
FOLD	64 Neutral	$3.03B	―	-6.87%	―	21.28%	87.30%
LQDA	57 Neutral	$2.96B	―	-183.82%	―	343.41%	11.91%
TVTX	56 Neutral	$3.07B	―	-410.78%	―	114.22%	77.02%
OCUL	55 Neutral	$3.43B	―	-81.83%	―	-9.21%	-8.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IBRX	41 Neutral	$2.23B	―	―	―	1025.95%	52.91%

Catalyst Pharma Corporate Events

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.

Catalyst Pharma Announces $200M Share Repurchase Program

On October 1, 2025, Catalyst Pharmaceuticals announced a share repurchase program approved by its Board of Directors, allowing the repurchase of up to $200 million of its common stock until December 31, 2026. The program aims to enhance shareholder value and will be funded using existing cash reserves, reflecting the company’s strong financial position and commitment to its strategic growth initiatives.