Catalyst Pharmaceuticals: A Cheap but Developing Biopharma Name

Catalyst Pharmaceuticals, a biopharma company, has posted its Q2 results, with a focus on its commercial-stage products. The company has experienced significant growth in revenue and net income, driven by the success of its lead product, FAMPYRA. Catalyst Pharmaceuticals' stock has been cheap, with a forward price-to-earnings ratio of 6.8, making it an attractive investment opportunity. The company's strong financial performance and potential for future growth make it a developing story worth considering.

Catalyst Pharmaceuticals (NASDAQ: CPRX) has released its Q2 2025 financial results, showcasing robust revenue growth and strong earnings performance. The company's lead product, FAMPYRA, has driven this growth, with significant increases in both revenue and net income. Despite these positive results, Catalyst Pharmaceuticals' stock experienced a decline, trading at a forward price-to-earnings (P/E) ratio of 6.8, making it an attractive investment opportunity.

In Q2 2025, Catalyst Pharmaceuticals reported non-GAAP earnings of 68 cents per share, exceeding the consensus estimate of 14 cents per share [1]. Revenues increased by 19.4% year-over-year to $146.5 million, surpassing expectations by $6 million [1]. This growth was primarily driven by FAMPYRA, which saw revenue growth of just under 10% to $84.8 million [1]. Additionally, AGAMREE, the company's newest product, saw revenue growth of more than 210% to $27.4 million, reflecting strong demand from patients transitioning from prednisone and EMFLAZA [1].

The company's stock experienced a decline of 7.66% in the latest trading session, closing at $21.79, down from a last close value [2]. Despite this decline, the stock remains undervalued, trading at a P/E ratio of 12.4 and an EV/EBITDA of 6.34 [2]. Catalyst Pharmaceuticals' strong financial performance and potential for future growth make it a developing story worth considering for investors.

The company's full-year revenue guidance for 2025 is between $545 million and $565 million, with FAMPYRA expected to contribute $355-360 million and Fycompa $90-95 million [2]. The company maintains a strong cash position, with $652.8 million in cash and marketable securities on its balance sheet [2].

References:
[1] https://seekingalpha.com/article/4812784-catalyst-pharmaceuticals-a-developing-story-cheap-enough
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-catalyst-pharmaceuticals-q2-2025-beats-eps-93CH-4177899