Catalyst Pharmaceuticals (CPRX): Valuation Check After Upbeat Quarter and Raised 2025 Sales Guidance

Catalyst Pharmaceuticals (CPRX) just delivered an upside third quarter, as strong Firdapse sales and growing Agamree revenue pushed results ahead of expectations and prompted management to raise its 2025 full year sales guidance.

See our latest analysis for Catalyst Pharmaceuticals.

That stronger outlook seems to be feeding into sentiment, with the stock showing a 15.8% 90 day share price return and a hefty 5 year total shareholder return above 500%. This suggests momentum is still building rather than fading.

If this kind of earnings driven rerating has your attention, it could be a good moment to explore other promising names in healthcare stocks and see what else fits your strategy.

But with shares already up strongly and trading at a steep discount to bullish analyst targets, is Catalyst still undervalued on its rare disease pipeline firepower, or are markets already pricing in the next leg of growth?

Most Popular Narrative Narrative: 32.4% Undervalued

With Catalyst Pharmaceuticals last closing at $23.16 against a narrative fair value in the mid 30s, the implied upside rests on some ambitious growth mechanics.

Accelerating AGAMREE launch trajectory with rapid patient conversion from both branded and generic steroids, robust retention (90%), and expanding use across Duchenne Muscular Dystrophy centers signals durable, high margin revenue contributions that will further diversify earnings beyond FIRDAPSE and help offset the impact of upcoming generic competition in the portfolio.

Read the complete narrative.

Curious how one launch, modest margin compression, and a richer future earnings multiple combine to justify that valuation gap? The full narrative spells out the math.

Result: Fair Value of $34.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, looming Firdapse concentration risk and FYCOMPA generic erosion could quickly undermine that upside case if competition bites harder than expected.

Find out about the key risks to this Catalyst Pharmaceuticals narrative.

Build Your Own Catalyst Pharmaceuticals Narrative

If this view does not quite line up with yours, or you want to lean on your own homework, you can shape a custom take in minutes: Do it your way.

A great starting point for your Catalyst Pharmaceuticals research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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