Catalyst Pharma (CPRX) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.93
• Revenue Growth: 29.97%
• EPS Growth: 178.11%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): 0.45
• Shares Outstanding: 121,975,150
• 10 Day Avg. Volume: 1,215,066
• 30 Day Avg. Volume: 1,360,988
• PEG Ratio: 0.65
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.41
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: $33.33
• Price Target Upside: 58.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $26.00 ▲(23.63%Upside)

Catalyst Pharma's overall stock score reflects its strong financial performance and strategic growth initiatives. While the technical indicators suggest caution, the company's robust earnings call and corporate events bolster its growth outlook. Valuation remains reasonable, providing a balanced view of potential risks and opportunities.

Positive Factors

Market Potential

Catalyst is well positioned to capitalize on the cancer associated LEMS opportunity for Firdapse.

Revenue Growth

Catalyst reported strong revenue across each of their commercial products.

Strategic Positioning

The decision to split the commercial field team is expected to reinforce launch execution as demand scales.

Negative Factors

Generic Competition

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

Generic Impact

Fycompa sales are likely to be negatively impacted by generic entry.

Uncertainty in Product Guidance

Commercial performance post generic entry in May is cited as the most significant unknown that could impact their total product guidance.

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 Pharma generates revenue primarily through the sale of its flagship product, Firdapse, which is distributed to patients suffering from Lambert-Eaton Myasthenic Syndrome (LEMS). The company also explores opportunities to expand the use of Firdapse through clinical trials and potential new indications, which could increase its market reach and revenue potential. Additionally, Catalyst Pharma may enter into strategic partnerships or licensing agreements that can provide upfront payments, milestone payments, and royalties, further contributing to its earnings. The company's financial success is influenced by its ability to market its products effectively, expand its product line, and navigate the regulatory environment for rare disease treatments.

Catalyst Pharma Financial Statement Overview

Summary

Catalyst Pharma has demonstrated strong financial performance with significant revenue growth and robust margins. The balance sheet is solid with low leverage and high liquidity, supporting financial stability. However, past volatility in free cash flow generation requires monitoring.

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
EBITDA	232.90M	119.69M	101.84M	52.38M	41.30M
Net Income	163.89M	71.41M	83.08M	39.48M	74.98M
Balance Sheet
Total Assets	851.41M	470.11M	375.63M	237.79M	192.35M
Cash, Cash Equivalents and Short-Term Investments	517.55M	137.64M	298.39M	191.27M	140.28M
Total Debt	3.19M	3.56M	3.89M	3.89M	28.77K
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	239.25M	-54.92M	116.02M	59.35M	45.02M
Operating Cash Flow	239.81M	143.60M	116.05M	60.37M	45.03M
Investing Cash Flow	-293.50M	-293.50M	9.21M	-11.02M	-5.01M
Financing Cash Flow	140.66M	-10.86M	1.69M	-8.14M	701.93K

Catalyst Pharma Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.03
• 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 21.03 is below the 20-day moving average (MA) of 21.54, below the 50-day MA of 23.24, and below the 200-day MA of 22.43, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 38.09 is Neutral, neither overbought nor oversold. The STOCH value of 41.33 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
ACAD	78 Outperform	$3.77B	16.42	37.24%	―	22.42%	―
CPRX	76 Outperform	$2.56B	13.52	29.11%	―	29.97%	178.11%
Sector *	65 Neutral	€6.37B	19.48	-1.30%	2.24%	-0.16%	-45.39%
CRSP	64 Neutral	$5.62B	―	-19.71%	―	-86.13%	-67.29%
RYTM	62 Neutral	$6.01B	―	-418.97%	―	48.88%	39.30%
MRUS	61 Neutral	$4.10B	―	-58.66%	―	42.77%	-51.27%
RARE	44 Neutral	$2.58B	―	-386.33%	―	33.46%	26.72%

Catalyst Pharma Corporate Events

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.

The most recent analyst rating on (CPRX) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Catalyst Pharma stock, see the CPRX Stock Forecast page.

Catalyst Pharma Holds 2025 Annual Stockholders Meeting

At Catalyst Pharma‘s 2025 Annual Meeting of Stockholders on May 20, 2025, several directors were elected to the Board, including Richard J. Daly, Patrick J. McEnany, Donald A. Denkhaus, Molly Harper, Tamar Thompson, and David S. Tierney, to serve until the 2026 meeting. Charles B. O’Keeffe, a long-standing independent board member, retired without any disagreements with the company. Additionally, the meeting saw the approval of an amendment to the 2018 Stock Incentive Plan, the 2024 executive compensation, and the ratification of Grant Thornton, LLP as the independent accounting firm for 2025.

The most recent analyst rating on (CPRX) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Catalyst Pharma stock, see the CPRX Stock Forecast page.

Catalyst Pharma Reports Record Q1 2025 Financial Results

Catalyst Pharmaceuticals reported record financial results for the first quarter of 2025, with total revenues reaching $141.4 million, marking a 43.6% increase from the previous year. The growth was driven by strong demand for its products, particularly FIRDAPSE and AGAMREE, and the company reaffirmed its full-year revenue guidance. Catalyst also highlighted strategic advancements, including the acceptance of AGAMREE’s New Drug Submission by Health Canada and the launch of FIRDAPSE in Japan, positioning the company for further growth and market expansion.