Catalyst Pharmaceuticals, Inc. (CPRX) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Strong revenue and EPS growth with key product expansions, raised guidance, positive analyst sentiment, technical breakout above resistance, and favorable biotech sector tailwinds make it a compelling short-term growth candidate.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Very high margins ⢠Strong liquidity ⢠Earnings concentration Catalyst exhibits very high gross and EBITDA margins, strong cash generation and negligible debt, but a yearâtoâdate profit pullback, sizable operating costs, and elevated receivables/intangibles temper the outlook.
Price Behavior
Key Price Behavior Insights: ⢠Mild downtrend ⢠Support holding ⢠Resistance capped Support Level: $22.50-$22.70 Resistance Level: $23.50-$24.00 CPRX has traded sideways to mildly down over the last month, failing to hold highs above $24 while finding short-term support around $22.50â$22.70, so watch a break above $23.50â$24 or below $22.50 for directional confirmation.
Sentiment & News
Key News Insights: ⢠Forbes recognition ⢠Investor presentation ⢠Ownership fluctuations Catalyst Pharmaceuticals earned notable external recognition and investor visibilityâForbes ranking and J.P. Morgan presentationâwhile engaging in advocacy partnerships amid insider selling and mixed institutional flows that create ownership volatility.
AI Summary
Catalyst has transitioned from binary biotech to a cash-rich commercial pharma where the investment hinge is whether AGAMREE's rapid uptake can offset imminent FYCOMPA generic erosion and absorb royalty/milestone dragâif AGAMREE growth sustains net revenue above the guidance midpoint and reaches ~$100M+ annual sales (triggering milestones), the buyback-fueled EPS support and strong cash buffer make the stock a value/compounding story; conversely, an adverse March 2026 patent outcome or multi-entrant generics would materially compress margins and valuation. Monitor quarterly AGAMREE net sales versus the $100M milestone cadence, FYCOMPA generic share trajectory, and disciplined $200M buyback execution as the specific catalysts that will validate or invalidate the new commercial thesis.
Description
Catalyst Pharmaceuticals is a commercial-stage biopharmaceutical company based in Coral Gables, Florida, that develops and sells therapies for rare neuromuscular and neurological disorders in the United States. Its marketed products include amifampridine formulations for adult and pediatric Lambert-Eaton myasthenic syndrome, and the company is advancing that therapy into additional neuromuscular indications such as certain forms of myasthenia gravis and spinal muscular atrophy. Catalyst also maintains licensing and collaboration arrangements with third parties, including BioMarin and Endo Ventures, and was founded in 2002 (renamed to its current corporate identity in 2015).
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 17 | Dec 24 | CPRX | Catalyst Pharmaceuticals, Inc. | Strong revenue and EPS growth with key product expansions, raised guidance, positive analyst sentiment, technical breakout above resistance, and favorable biotech sector tailwinds make it a compelling short-term growth candidate. | Closed | +1.9% |