Catalyst Pharma (CPRX) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.98
• Revenue Growth: 29.97%
• EPS Growth: 178.11%
• Country: US
• Employees: 181
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): 0.45
• Shares Outstanding: 121,975,150
• 10 Day Avg. Volume: 1,173,109
• 30 Day Avg. Volume: 1,221,563
• PEG Ratio: 1.53
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.91
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: 3.69
• 1Y Price Target: $34.00
• Price Target Upside: 42.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Catalyst Pharma's strong financial performance, highlighted by robust revenue growth and high margins, is a major strength. The technical indicators suggest stable market sentiment with potential for growth. The valuation is reasonable, though the absence of a dividend yield is a consideration for some investors. Overall, the company is well-positioned for future growth, but investors should be mindful of potential challenges such as cash flow volatility and generic competition for FYCOMPA.

Positive Factors

Agamree Launch

Agamree launch strength exceeds early expectations while Fycompa holds firm ahead of LOE.

Oncology Growth

Firdapse poised to continue steady growth with oncology assets adding long-term upside.

Patent Settlement

Catalyst Pharma shares are outperforming (+15% versus flat market) following announcement of a Firdapse patent settlement with a key generic challenger (Teva).

Negative Factors

Fycompa Sales

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

Generic Competition

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

Catalyst Pharma Business Overview & Revenue Model

Company Description

Catalyst Pharmaceuticals, Inc. (CPRX) is a biopharmaceutical company dedicated to developing and commercializing innovative therapies for people with rare, debilitating, chronic neuromuscular and neurological diseases. The company operates primarily in the healthcare sector, focusing on orphan drugs, which are medications or other medicinal products used to treat rare diseases. Catalyst Pharma's core products include Firdapse, a treatment for Lambert-Eaton Myasthenic Syndrome (LEMS), and other pipeline candidates targeting similar rare conditions.

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 statements reflect strong 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
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
232.90M	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
3.19M	3.56M	3.89M	3.89M	28.77K
	Net Debt
-514.37M	-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
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: Positive
• Last Price: 23.83
• 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 23.83 is above the 20-day moving average (MA) of 23.36, above the 50-day MA of 23.02, and above the 200-day MA of 21.53, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 59.86 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	81 Outperform	$2.85B	14.91	29.11%	―	29.97%	178.11%
ACAD	78 Outperform	$2.92B	12.70	37.24%	―	22.42%	―
RYTM	59 Neutral	$3.65B	―	-418.97%	―	48.88%	39.30%
Sector *	52 Neutral	$5.21B	3.49	-43.30%	2.83%	14.70%	-0.24%
RARE	49 Neutral	$3.32B	―	-386.33%	―	33.46%	26.72%
CRSP	48 Neutral	$3.08B	―	-19.71%	―	-86.13%	-67.29%
MRUS	41 Neutral	$2.83B	―	-58.66%	―	42.77%	-51.27%

Catalyst Pharma Corporate Events

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.

Spark’s Take on CPRX Stock

According to Spark, TipRanks’ AI Analyst, CPRX is a Outperform.

Catalyst Pharma shows a strong overall financial position with impressive revenue growth and robust margins, supported by a solid balance sheet. The technical indicators suggest stable market sentiment with potential for growth. While the valuation is reasonable, the absence of a dividend yield and the increase in SG&A expenses are factors to consider. The company is well-positioned for future growth, but investors should be mindful of past cash flow volatility and potential challenges from generic competition for FYCOMPA.

To see Spark’s full report on CPRX stock, click here.