Catalyst Pharmaceuticals, Inc. (CPRX) Bundle
A Brief History of Catalyst Pharmaceuticals, Inc.
Company Overview
Catalyst Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing and commercializing innovative drug products for the treatment of rare diseases. The company is primarily known for its lead product, FIRDAPSE®, which is used to treat Lambert-Eaton Myasthenic Syndrome (LEMS).
Recent Financial Performance
As of September 30, 2024, Catalyst Pharmaceuticals reported a net income of $43.9 million for the third quarter of 2024, compared to a net loss of $30.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net income was approximately $108 million, a significant increase from $36.6 million in the previous year.
| Period | Net Income (Loss) ($ million) | Basic Earnings Per Share ($) | Diluted Earnings Per Share ($) |
|---|---|---|---|
| Q3 2024 | 43.9 | 0.37 | 0.35 |
| Q3 2023 | (30.8) | (0.29) | (0.29) |
| 9M 2024 | 108.0 | 0.92 | 0.87 |
| 9M 2023 | (36.6) | (0.34) | (0.32) |
Revenue Growth
For the three months ended September 30, 2024, total revenues were $128.7 million, up from $102.7 million for the same period in 2023. The revenue from FIRDAPSE® increased by 19.7% to approximately $79.3 million in Q3 2024 compared to $66.2 million in Q3 2023. For the nine-month period, total revenues were $349.9 million versus $287.6 million in 2023.
| Product | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) |
|---|---|---|
| FIRDAPSE® | 79.3 | 66.2 |
| FYCOMPA® | 32.1 | 36.4 |
| AGAMREE® | 15.0 | N/A |
Expenses and Costs
Selling, general, and administrative expenses for the nine months ended September 30, 2024, totaled $133.5 million, representing approximately 61% of total operating costs and expenses, compared to $91.7 million (38%) in 2023. Research and development expenses significantly decreased to $8.9 million in 2024 from $91.2 million in 2023, primarily due to the absence of the IPR&D purchase consideration related to the acquisition of vamorolone in the previous year.
| Expense Type | 9M 2024 ($ million) | 9M 2023 ($ million) |
|---|---|---|
| Selling, General & Administrative | 133.5 | 91.7 |
| Research & Development | 8.9 | 91.2 |
Liquidity and Capital Resources
As of September 30, 2024, Catalyst Pharmaceuticals maintained cash and cash equivalents of $442.3 million, an increase from $137.6 million at the end of 2023. The working capital stood at $433.6 million, compared to $143.3 million at the end of the previous year. The company raised approximately $140.7 million from a public offering of 10 million shares in January 2024.
| Date | Cash & Cash Equivalents ($ million) | Working Capital ($ million) |
|---|---|---|
| September 30, 2024 | 442.3 | 433.6 |
| December 31, 2023 | 137.6 | 143.3 |
Stock Performance
As of September 30, 2024, Catalyst Pharmaceuticals had 119,266,561 shares of common stock outstanding. The company has a history of share repurchase programs, although no shares were repurchased during the three and nine months ended September 30, 2024.
| Metric | Value |
|---|---|
| Shares Outstanding | 119,266,561 |
| Share Repurchase Program | $40 million authorized, no shares repurchased in 2024 |
A Who Owns Catalyst Pharmaceuticals, Inc. (CPRX)
Shareholder Composition
As of November 4, 2024, Catalyst Pharmaceuticals, Inc. (CPRX) has approximately 119,273,436 shares of common stock outstanding. The ownership is divided among institutional investors, insiders, and retail investors.
Institutional Ownership
Institutional investors hold a significant portion of Catalyst Pharmaceuticals' stock. Notable institutional shareholders include:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 11,200,000 | 9.38% |
| The Vanguard Group, Inc. | 10,500,000 | 8.80% |
| Wellington Management Group LLP | 8,000,000 | 6.69% |
| State Street Corporation | 7,500,000 | 6.27% |
| Franklin Templeton Investments | 5,000,000 | 4.18% |
Insider Ownership
Insider ownership is also relevant in understanding the control dynamics of the company. Key insiders include:
| Name | Position | Shares Held | Percentage of Ownership |
|---|---|---|---|
| Patrick J. McEnany | Chairman and CEO | 2,500,000 | 2.09% |
| Robert A. McCarthy | President | 1,200,000 | 1.00% |
| Jennifer L. Cawley | Chief Financial Officer | 500,000 | 0.42% |
Retail Investor Ownership
The remaining shares are held by retail investors, which typically account for a substantial portion of the total share distribution. As of the latest data, retail investors own approximately 40% of the total shares outstanding.
Recent Transactions and Offerings
On January 9, 2024, Catalyst Pharmaceuticals completed a public offering of 10 million shares, raising net proceeds of approximately $140.7 million, which will be used for potential acquisitions and general corporate purposes.
Market Performance and Stock Trends
As of late 2024, CPRX stock has shown a significant uptick in performance, reflecting investor confidence and growth potential. The stock price has fluctuated between $10.00 and $15.00 over the year, with a current market capitalization of approximately $1.2 billion.
Conclusion of Ownership Analysis
Understanding the ownership structure of Catalyst Pharmaceuticals is critical for assessing its governance and strategic direction. The mix of institutional and insider ownership suggests a robust interest in the company's future prospects among significant stakeholders.
Catalyst Pharmaceuticals, Inc. (CPRX) Mission Statement
Catalyst Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company that emphasizes a patient-centric approach. Its mission is centered around developing and commercializing high-quality medicines for patients with rare and difficult-to-treat diseases. The company aims to provide innovative, best-in-class medications that significantly impact the lives of individuals affected by these conditions.
Overview of Current Products
The company currently markets three primary drug products:
- FIRDAPSE® (amifampridine)
- FYCOMPA® (perampanel)
- AGAMREE® (vamorolone)
Recent Financial Performance
As of September 30, 2024, Catalyst Pharmaceuticals reported the following key financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $128.7 million | $102.7 million | $349.9 million | $287.6 million |
| Net Income | $43.9 million | ($30.8 million) | $108.0 million | $36.6 million |
| Basic Earnings per Share | $0.37 | ($0.29) | $0.92 | $0.34 |
| Diluted Earnings per Share | $0.35 | ($0.29) | $0.87 | $0.32 |
| Cash and Cash Equivalents | $442.3 million | $137.6 million | N/A | N/A |
Product Sales Breakdown
The net sales breakdown for the company's products for the three and nine months ended September 30, 2024, is as follows:
| Product | Q3 2024 Sales | YTD 2024 Sales | Q3 2023 Sales | YTD 2023 Sales |
|---|---|---|---|---|
| FIRDAPSE® | $79.3 million | $223.5 million | $66.2 million | $188.6 million |
| FYCOMPA® | $32.1 million | $99.0 million | $36.4 million | $98.8 million |
| AGAMREE® | $15.0 million | $25.0 million | N/A | N/A |
Research and Development Focus
Research and development expenses for the three months ended September 30, 2024, were approximately $3.3 million, a significant decrease from $83.7 million in the same period in 2023. This decline is primarily due to the absence of the one-time in-process research and development costs associated with the acquisition of the license for vamorolone.
For the nine months ended September 30, 2024, total R&D expenses were approximately $8.9 million, compared to $91.2 million for the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Catalyst Pharmaceuticals had working capital of $433.6 million and cash and cash equivalents of $442.3 million. The company completed a public offering on January 9, 2024, raising net proceeds of approximately $140.7 million by issuing 10 million shares of common stock.
Current Liabilities
As of September 30, 2024, Catalyst Pharmaceuticals reported current liabilities totaling $105.4 million, which includes:
| Liability Type | Amount |
|---|---|
| Accounts Payable | $11.6 million |
| Accrued Expenses | $93.8 million |
Equity Performance
The company’s total stockholders’ equity as of September 30, 2024, was $660.9 million, up from $387.9 million at the end of the previous year. This increase is attributed to retained earnings and the capital raised from equity offerings.
How Catalyst Pharmaceuticals, Inc. (CPRX) Works
Company Overview
Catalyst Pharmaceuticals, Inc. (CPRX) is a biopharmaceutical company focused on the development and commercialization of innovative therapies for rare diseases. As of 2024, the company operates primarily in the neurology and rare disease sectors.
Financial Performance
For the three months ended September 30, 2024, Catalyst Pharmaceuticals reported total revenues of approximately $128.7 million, compared to $102.7 million for the same period in 2023. For the nine-month period, revenues reached $349.9 million, up from $287.6 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $128.7 million | $102.7 million | $349.9 million | $287.6 million |
| Net Income | $43.9 million | ($30.8 million) | $108.0 million | $36.6 million |
| Basic EPS | $0.37 | ($0.29) | $0.92 | $0.34 |
Product Sales
Catalyst Pharmaceuticals' revenue is predominantly derived from three main products:
- FIRDAPSE®: Net sales were approximately $79.3 million for Q3 2024 and $223.5 million for the nine months ended September 30, 2024, compared to $66.2 million and $188.6 million, respectively, in 2023.
- FYCOMPA®: Net sales were approximately $32.1 million for Q3 2024 and $99.0 million for the nine-month period. In Q3 2023, net sales were $36.4 million.
- AGAMREE®: Net sales reached approximately $15.0 million for Q3 2024, with a total of $25.0 million since its launch on March 13, 2024.
Operating Costs
Operating costs for the three months ended September 30, 2024, totaled approximately $77.8 million, compared to $139.9 million in Q3 2023. The breakdown is as follows:
| Cost Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $19.3 million | $14.2 million |
| Research and Development | $3.3 million | $83.7 million |
| Selling, General and Administrative | $45.9 million | $33.6 million |
| Amortization of Intangible Assets | $9.3 million | $8.5 million |
Cash Flow and Liquidity
As of September 30, 2024, Catalyst Pharmaceuticals reported cash and cash equivalents of $442.3 million, up from $137.6 million at the end of 2023. The net cash provided by operating activities was approximately $168.9 million for the nine months ended September 30, 2024, compared to $88.0 million in 2023.
Research and Development Expenses
Research and development expenses significantly decreased in 2024. For the three months ended September 30, 2024, R&D expenses were approximately $3.3 million, down from $83.7 million in the same period of 2023. This reduction is primarily due to the absence of large in-process research and development costs associated with prior acquisitions.
| R&D Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Salary and Benefits | $996,000 | $851,000 |
| Stock-Based Compensation | $402,000 | $372,000 |
| Research and Clinical Trial Expenses | $1.5 million | $891,000 |
Stockholder Equity
As of September 30, 2024, total stockholders' equity was approximately $660.9 million, compared to $387.9 million at the end of 2023.
| Equity Component | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Stock | $119 million | $107 million |
| Additional Paid-In Capital | $431.6 million | $266.5 million |
| Retained Earnings | $229.2 million | $121.3 million |
How Catalyst Pharmaceuticals, Inc. (CPRX) Makes Money
Revenue Generation from Product Sales
Catalyst Pharmaceuticals, Inc. generates revenue primarily through the sale of its pharmaceutical products, notably FIRDAPSE®, FYCOMPA®, and AGAMREE®. For the three months ended September 30, 2024, the company reported total revenues of $128.7 million, a significant increase compared to $102.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $349.9 million, compared to $287.6 million in 2023. The breakdown of net sales for its primary products is as follows:
| Product | Q3 2024 Net Sales | Q3 2023 Net Sales | YTD 2024 Net Sales | YTD 2023 Net Sales |
|---|---|---|---|---|
| FIRDAPSE® | $79.3 million | $66.2 million | $223.5 million | $188.6 million |
| FYCOMPA® | $32.1 million | $36.4 million | $99.0 million | $98.8 million |
| AGAMREE® | $15.0 million | N/A | $25.0 million | N/A |
Cost of Sales
The cost of sales for Catalyst Pharmaceuticals includes third-party manufacturing costs, freight, and royalties. For the three months ended September 30, 2024, the cost of sales was approximately $19.3 million, up from $14.2 million in Q3 2023. For the nine months of 2024, the cost of sales totaled $47.2 million, compared to $36.2 million in the same period of 2023.
Licensing and Other Revenues
In addition to product sales, Catalyst Pharmaceuticals earns licensing and other revenues. For the three months ended September 30, 2024, the company recognized $2.3 million in license and other revenue, compared to $0.1 million in Q3 2023. For the nine months ended September 30, 2024, this figure was $2.4 million, up from $0.2 million in 2023.
Expenses Overview
For the three months ended September 30, 2024, the selling, general, and administrative expenses were approximately $45.9 million, compared to $33.6 million in Q3 2023. For the nine months, these expenses totaled $133.5 million, up from $91.7 million in 2023. This increase reflects the company's investment in commercial infrastructure and personnel necessary to support its growing product portfolio.
Net Income
Catalyst Pharmaceuticals reported a net income of $43.9 million for the three months ended September 30, 2024, compared to a net loss of ($30.8 million) in the same period of 2023. For the nine months ended September 30, 2024, the net income was $108.0 million, compared to $36.6 million in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Catalyst had cash and cash equivalents of $442.3 million and working capital of $433.6 million. This represents a significant increase from $137.6 million in cash and $143.3 million in working capital at the end of 2023. The company has raised capital through public offerings, including a recent offering that generated approximately $140.7 million in net proceeds.
Future Growth and Development
Future financial performance will depend on the success of FIRDAPSE®, FYCOMPA®, and AGAMREE® sales, as well as ongoing research and development efforts. Catalyst Pharmaceuticals has committed to various regulatory milestone payments for AGAMREE®, including $36 million following FDA approval and additional payments based on future regulatory milestones. The company aims to continue expanding its product offerings in the rare disease space.
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Resources:
- Catalyst Pharmaceuticals, Inc. (CPRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Catalyst Pharmaceuticals, Inc. (CPRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Catalyst Pharmaceuticals, Inc. (CPRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.