Catalyst Pharmaceuticals, Inc. (CPRX): A Bull Case Theory 

We came across a bullish thesis on Catalyst Pharmaceuticals, Inc. on BioEquity Watch’s Substack. In this article, we will summarize the bulls’ thesis on CPRX. Catalyst Pharmaceuticals, Inc.’s share was trading at $22.96 as of January 15th. CPRX’s trailing and forward P/E were 13.43 and 10.34 respectively according to Yahoo Finance.

Catalyst Pharmaceuticals (CPRX) is positioned as a leading rare-disease biopharma with a focused dual-pillar strategy centered on FIRDAPSE and AGAMREE. FIRDAPSE (amifampridine) is the only FDA-approved therapy for Lambert-Eaton Myasthenic Syndrome (LEMS) in adults and pediatric patients six and older, leveraging a unique mechanism that enhances acetylcholine release to restore muscle function. Its efficacy is backed by two positive Phase 3 studies, and patent protection extends through February 2035, effectively creating a near-monopoly in its market.

The company is driving growth through promotion of a recently approved 100mg maximum daily dose and expanding outreach to capture cancer-associated LEMS patients. AGAMREE (vamorolone), approved for Duchenne Muscular Dystrophy (DMD) in patients two and older, offers a differentiated, dissociative corticosteroid profile designed to retain anti-inflammatory and muscle-strengthening effects while reducing long-term side effects such as impacts on growth and bone health. Its pivotal VISION-DMD trial met primary endpoints, and ongoing SUMMIT Study data will further support label expansion and real-world outcomes.

Financially, Catalyst reported Q2 2025 revenues of $146.6 million, up 19.4% year-over-year, driven by FIRDAPSE and AGAMREE adoption, with net income of $52.1 million and a net margin over 35%. The company holds $652.8 million in cash with no debt and a $200 million share repurchase program, providing flexibility for growth and acquisitions.

While FYCOMPA faces generic erosion, the rare-disease portfolio offers durable exclusivity and high-margin growth. Upcoming catalysts include Q3 financials, Canadian AGAMREE approval, SUMMIT interim data, and potential acquisitions, all of which could materially enhance valuation. The combination of long-term exclusivity, differentiated growth, strong cash position, and strategic optionality positions Catalyst as a compelling investment with significant upside potential in the rare-disease sector.

Previously, we covered a bullish thesis on CRISPR Therapeutics AG (CRSP) by MADD-Scientis in March 2025, which highlighted Casgevy’s blockbuster potential, strong net cash position, and upside from its gene-editing pipeline. CRSP’s stock price has appreciated by approximately 32.31% since our coverage due to improving reimbursement visibility. BioEquity Watch shares a similar but emphasizes on durable cash flows and exclusivity at Catalyst Pharmaceuticals (CPRX).

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Disclosure: None.