Catalyst Pharmaceuticals — Financial Results

Revenue Jumped 20% in 2025, Driven by AGAMREE's First Full Year and FIRDAPSE Growth

Total revenue rose by roughly $99.5 million year-over-year. AGAMREE only launched in March 2024, so 2025 was its first complete year on the market — and it more than doubled the prior period's sales. FIRDAPSE also grew solidly, driven by higher patient volumes. FYCOMPA declined as expected, with generic competitors entering the market after patent expiry.

Net Income Rose 31%, With $709 Million in Cash on Hand

The company converted its revenue growth into a 31% jump in net profit. That cash pile — nearly $710 million — is a notable feature: it gives management significant firepower to pursue new drug acquisitions, which is an explicit part of the strategy.

A Key FIRDAPSE Royalty Expense Just Dropped Sharply, Boosting Future Margins

Starting January 26, 2026, the total royalty rate the company pays on U.S. net sales of FIRDAPSE fell from a maximum of 18.5% to 6%. This is because a major license agreement entered its post-seven-year phase, sharply reducing the fee owed to upstream licensors. This cost reduction did not benefit 2025 results but should meaningfully improve profitability on FIRDAPSE sales going forward.

Generic Competition for FYCOMPA Has Arrived — and Revenue Will Keep Falling

FYCOMPA's main patent expired in May 2025, and three generic versions of the tablet are now on the market. The company has already stopped active marketing of the product as of December 31, 2025. Revenue will likely continue declining, though the company will keep selling it. This also removes a drag on selling expenses going forward.

The Remaining FIRDAPSE Patent Lawsuit Is the Key Near-Term Legal Risk

The company has settled patent challenges from Teva (entry no earlier than February 2035) and Lupin (same terms), and also settled with Inventia and Lupin. However, a trial against Hetero — the one remaining generic challenger — is scheduled to begin March 23, 2026. If Hetero prevails, it could bring a generic FIRDAPSE to market earlier than 2035, which would be a significant threat to the company's largest revenue source. The outcome is genuinely uncertain.

AGAMREE Crossed $100 Million in Annual Sales, Triggering a Milestone Payment to Santhera

AGAMREE's 2025 revenues exceeded $100 million, which automatically triggered a sales-based milestone payment of up to $12.5 million owed to Santhera, the original developer. Royalty rates on AGAMREE sales may also increase as revenues cross further thresholds. These contractual obligations are worth watching as AGAMREE scales.

A $200 Million Share Buyback Has Begun, Signaling Management Confidence

The board authorized a buyback of up to $200 million of common stock between October 2025 and December 2026. By late February 2026, the company had repurchased about 1.74 million shares for roughly $39.9 million at an average price of $22.91 per share. Management stated this can run alongside acquisition activity without compromising business development plans.