NASDAQ false 0001369568 0001369568 2024-05-08 2024-05-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): May 8, 2024

 

 

CATALYST PHARMACEUTICALS, INC.

(Exact Name Of Registrant As Specified In Its Charter)

 

 

 

Delaware   001-33057   76-0837053

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(I.R.S. Employer

Identification No.)

 

355 Alhambra Circle  
Suite 801  
Coral Gables, Florida   33134
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (305) 420-3200

Not Applicable

Former Name or Former address, if changed since last report

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

  

Name of Exchange

on Which Registered

  

Ticker

Symbol

Common Stock, par value $0.001 per share   NASDAQ Capital Market   CPRX

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this Chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 8.01

Other Events

On May 8, 2024, the Company issued a press release announcing its results of operations for the three months ended March 31, 2024 and providing a business update. A copy of the press release is attached hereto as Exhibit 99.1.

 

Item 9.01

Financial Statements and Exhibits.

 

  (d)

Exhibits

 

99.1    Press release issued by the Company on May 8, 2024.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Catalyst Pharmaceuticals, Inc.
By:  

/s/ Michael Kalb

  Michael Kalb
  Executive Vice President and CFO

Dated: May 8, 2024

 

3

Exhibit 99.1

Catalyst Pharmaceuticals Reports Solid First Quarter 2024 Financial Results and Provides Business Update

Achieved Total Q1 2024 Revenues of $98.5 Million, a 15.4% YoY Increase, Underscored by Exceptional Execution and Continued Demand for Commercial Products

FIRDAPSE® Q1 2024 Net Product Revenues of $66.8 Million, a 16.2% YoY Increase

Robust Revenue Momentum for FIRDAPSE®

Successfully Commenced the U.S. Launch of AGAMREE® on March 13, 2024

Reported AGAMREE® Q1 2024 Net Product Revenues of $1.2 Million for the First Two Weeks of Commercial Availability

Early AGAMREE® Launch Indicators Highlight Promising Product Uptake Surpassing Initial Expectations

Q1 2024 GAAP Net Income of $23.3 Million, $0.19 Per Share Diluted

Q1 2024 Non-GAAP Net Income of $46.8 Million, $0.38 Per Share Diluted

Reaffirm Full Year 2024 Total Revenue Guidance Between $455 Million and $475 Million

Conference Call and Webcast to be Held on May 9, 2024, at 8:30 AM ET

CORAL GABLES, Fla., May 8, 2024 - Catalyst Pharmaceuticals, Inc. (“Catalyst” or “Company”) (Nasdaq: CPRX) today reported financial results for the first quarter of 2024 and provided a business update.

“Our strong performance in the first quarter provides us with the momentum for continued growth throughout the year,” stated Richard Daly, President and Chief Executive Officer of Catalyst. “The successful U.S. launch of AGAMREE and sustained double-digit growth of FIRDAPSE are a testament to our team’s commitment to serving patients through innovative products and outstanding execution. Building on the positive indicators observed during the initial phase of AGAMREE’s launch further strengthens our confidence for accelerated growth of this critically important product.”

Financial Highlights

 

For the Three Months Ended March 31,    2024      2023      % Change  
(In thousands, except per share data)                     

Product Revenue, net

    $ 98,441      $ 85,304        15.4 % 

FIRDAPSE Product Revenue, net

    $ 66,842      $ 57,526        16.2 % 

FYCOMPA Product Revenue, net**

    $ 30,425      $ 27,778        9.5 % 

AGAMREE Product Revenue, net

    $ 1,174        N/A        N/A  

GAAP Net Income

    $ 23,275      $ 29,568        (21.3 %) 

Non-GAAP Net Income ***

    $ 46,767      $ 46,805        (0.1 %) 

GAAP Net Income Per Share - Basic

    $ 0.20      $ 0.28        (28.6 %) 

Non-GAAP Net Income Per Share – Basic***

    $ 0.40      $ 0.44        (9.1 %) 

GAAP Net Income Per Share – Diluted

    $ 0.19      $ 0.26        (26.9 %) 

Non-GAAP Net Income Per Share – Diluted***

    $ 0.38      $ 0.41        (7.3 %) 

As of March 31, 2024 and December 31, 2023

         
(In thousands)                     

Cash and Cash Equivalents

    $ 310,411      $ 137,636        125.5 % 

 

**

For Q1 2023, represents product revenue, net from the date of acquisition of the product rights.

***

Statements made in this press release include non-GAAP financial measures. Such information is provided as additional information and not as an alternative to Catalyst’s financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP financial measures are intended to enhance an overall understanding of Catalyst’s current financial performance. Catalyst believes that the non-GAAP financial measures presented in this press release provide investors and prospective investors with an alternative method for assessing Catalyst’s operating results in a manner that Catalyst believes is focused on the performance of ongoing operations and provides a more consistent basis for comparison between periods. Non-GAAP financial measures should not be considered in isolation or as a substitute for comparable GAAP accounting. Further, non-GAAP measures of net income used by Catalyst may be different from and not directly comparable to similarly titled measures used by other companies.

The non-GAAP financial measure included in this press release excludes from the calculation of net income (i) the expense associated with non-cash stock-based compensation, (ii) non-cash depreciation expense, (iii) non-cash amortization of intangible assets expense, and (iv) the provision for income taxes. Non-GAAP net income per share is calculated by dividing non-GAAP net income by the weighted average shares outstanding. See the “Reconciliation of Non-GAAP Metrics” table below.

Recent Business Highlights

 

  •  

Achieved solid performance with Q1 2024 total revenues of $98.5 million, reflecting a 15.4% increase compared to Q1 2023, driven by the persistent demand for the Company’s innovative commercial products.

 

  •  

Promptly implemented measures to ensure uninterrupted patient access to treatment amidst external third-party prescription processing disruptions while sustaining the compelling product growth momentum.

 

  •  

Delivered outstanding growth performance for FIRDAPSE, achieving net product revenues of $66.8 million for Q1 2024, representing growth of 16.2% compared to Q1 2023, despite transient revenue impact by external disruptions in prescription processing during the period.

 

  •  

Achieved FYCOMPA net product revenues of $30.4 million for Q1 2024, representing growth of 9.5% compared to Q1 2023. Revenue growth reflects the full quarter for Q1 2024, compared to the partial Q1 2023 period, due to the timing of the acquisition.

 

  •  

Successfully commenced the U.S. AGAMREE commercial launch, an innovative corticosteroid for the treatment of Duchenne muscular dystrophy in patients aged two years and older, on March 13, 2024.

 

  •  

Early indicators for the AGAMREE U.S. launch show strong demand exceeding initial expectations.

 

  •  

Reported AGAMREE net product revenues of $1.2 million for Q1 2024, reflecting approximately the first two weeks of U.S. commercial availability.

 

  •  

Endorsed the inaugural Lambert-Eaton myasthenic syndrome (“LEMS”) Awareness Day, now officially observed annually on March 30th, marking a significant milestone for the LEMS community.

 

  •  

Strong cash position of $310.4 million as of March 31, 2024, fortified by the approximately $140.7 million in net proceeds yielded from the 10 million shares of common stock offering in January 2024.

 

  •  

Reaffirm the 2024 full-year total revenue guidance in the range of $455 million and $475 million.

First Quarter 2024 Financial Results

Total revenues: In the first quarter of 2024, total revenues were $98.5 million, compared to $85.4 million for the first quarter of 2023, representing an increase of approximately 15.4%.

Product revenue, net: Product revenue, net for the first quarter of 2024 was $98.4 million, compared to $85.3 million for the first quarter of 2023, representing an increase of approximately 15.4%.

Research and development expenses: Research and development expenses for the first quarter of 2024 were $2.6 million, compared to $3.6 million for the first quarter of 2023, representing a decrease of approximately 27.5%.

Selling, general, and administrative expenses: Selling, general, and administrative expenses for the first quarter of 2024 were $46.9 million, compared to $29.7 million for the first quarter of 2023, representing an increase of approximately 57.9% primarily relating to preparation for the launch of AGAMREE.

Amortization of intangible assets: Amortization of intangible assets was $9.3 million in the first quarter of 2024, compared to $6.5 million in the first quarter of 2023, representing an increase of approximately 43.1%.

Operating income: Operating income for the first quarter of 2024 was $27.1 million, compared to $35.6 million for the first quarter of 2023, representing a decrease of approximately 23.8%.

GAAP net income: GAAP net income for the first quarter of 2024 was $23.3 million ($0.20 per basic and $0.19 per diluted share), compared to GAAP net income of $29.6 million ($0.28 per basic and $0.26 per diluted share) for the first quarter of 2023.

Non-GAAP net income: Non-GAAP net income for the first quarter of 2024 was $46.8 million ($0.40 per basic and $0.38 per diluted share), compared to non-GAAP net income of $46.8 million ($0.44 per basic and $0.41 per diluted share) for the first quarter of 2023.

Cash and cash equivalents: Cash and cash equivalents were $310.4 million as of March 31, 2024.

Our Form 10-Q for the first quarter of 2024, filed with the U.S. Securities and Exchange Commission on May 8, 2024, provides more detailed financial information and analysis of our financial condition and results of operations.

Conference Call & Webcast Details

The Company will host a conference call and webcast on May 9, 2024, at 8:30 AM ET to discuss the financial results and provide a business update.

U.S./Canada Dial-in Number:     (877) 407-8912

International Dial-in Number:     (201) 689-8059

A webcast will be accessible under the investor section on the Company’s website at www.catalystpharma.com. A webcast replay will be available on the Catalyst website for 30 days after the event.

About Catalyst Pharmaceuticals, Inc.

With exceptional patient focus, Catalyst is committed to developing and commercializing innovative first-in-class medicines that address rare and difficult-to-treat diseases. Catalyst’s flagship U.S. commercial product is FIRDAPSE® (amifampridine) Tablets 10 mg, approved for the treatment of Lambert-Eaton myasthenic syndrome (“LEMS”) for adults and for children ages six to seventeen. In January 2023, Catalyst acquired the U.S. commercial rights to FYCOMPA® (perampanel) CIII, a prescription medicine approved in people with epilepsy aged four and older alone or with other medicines to treat partial-onset seizures with or without secondarily generalized seizures and with other medicines to treat primary generalized tonic-clonic seizures for people with epilepsy aged 12 and older. Further, Canada’s national healthcare regulatory agency, Health Canada, has approved the use of FIRDAPSE for the treatment of adult patients in Canada with LEMS. On July 18th, 2023, Catalyst acquired an exclusive license for North America for AGAMREE® (vamorolone) oral suspension 40 mg/mL, a novel corticosteroid treatment for Duchenne muscular dystrophy. AGAMREE previously received FDA Orphan Drug and Fast Track designations and was approved by the FDA for commercialization in the U.S. on October 26th, 2023. AGAMREE became available in the U.S. by prescription on March 13, 2024.

For more information about Catalyst Pharmaceuticals, Inc., visit the Company’s website at www.catalystpharma.com. For Full Prescribing and Safety Information for FIRDAPSE®, visit www.firdapse.com. For Full Prescribing Information, including Boxed WARNING for FYCOMPA®, please visit www.fycompa.com. For Full Prescribing Information for AGAMREE®, please visit www.agamree.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Catalyst’s actual results in future periods to differ materially from forecasted results. A number of factors, including (i) whether the launch of AGAMREE® will surpass initial expectations and exceed 2024 full-year revenue forecasts for sales of the product that were previously published by the Company (ii) whether AGAMREE’s commercialization will ultimately be profitable, cash flow positive, and accretive to Catalyst, (iii) Catalyst’s ability to continue to successfully sell its current products, (iv) whether Catalyst will continue to be profitable and cash flow positive, (v) whether Catalyst’s total revenue forecast for 2024 included in this press release will prove to be accurate, (vi) whether Catalyst will complete additional acquisitions of products, and the timing of any such acquisitions; (vii) the impact of pending Paragraph IV litigation relating to the Company’s FIRDAPSE® and FYCOMPA® products if the results of these litigation matters are adverse, and (viii) those factors described in Catalyst’s Annual Report on Form 10-K for the 2023 fiscal year, Catalyst’s Quarterly Report on Form 10-Q for the first quarter of 2024, and Catalyst’s other filings with the SEC, could adversely affect Catalyst. Copies of Catalyst’s filings with the SEC are available from the SEC, may be found on Catalyst’s website, or may be obtained upon request from Catalyst. Catalyst does not undertake any obligation to update the information contained herein, which speaks only as of this date.

CATALYST PHARMACEUTICALS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except share and per share data)

 

     For the Three Months Ended March 31,  
       2024          2023    

Revenues:

      

Product revenue, net

    $ 98,441    $ 85,304

License and other revenue

      68      62
  

 

 

     

 

 

  

Total revenues

      98,509      85,366
  

 

 

     

 

 

  

Operating costs and expenses:

      

Cost of sales (a)

      12,520      9,946

Research and development

      2,581      3,562

Selling, general and administrative (a)

      46,938      29,718

Amortization of intangible assets

      9,344      6,531
  

 

 

     

 

 

  

Total operating costs and expenses

      71,383      49,757
  

 

 

     

 

 

  

Operating income

      27,126      35,609

Other income, net

      1,963      1,704
  

 

 

     

 

 

  

Net income before income taxes

      29,089      37,313

Income tax provision

      5,814      7,745
  

 

 

     

 

 

  

Net income

    $ 23,275    $ 29,568
  

 

 

     

 

 

  

Net income per share:

      

Basic

    $ 0.20    $ 0.28
  

 

 

     

 

 

  

Diluted

    $ 0.19    $ 0.26
  

 

 

     

 

 

  

Weighted average shares outstanding:

      

Basic

      116,806,117      105,561,229
  

 

 

     

 

 

  

Diluted

      123,403,626      113,986,129
  

 

 

     

 

 

  

 

(a)

exclusive of amortization of intangible assets

CATALYST PHARMACEUTICALS, INC.

RECONCILIATION OF NON-GAAP METRICS (unaudited)

(in thousands, except share and per share data)

 

     For the Three Months Ended March 31,  
       2024          2023    

GAAP net income

    $ 23,275    $ 29,568

Non-GAAP adjustments:

      

Stock-based compensation expense

      8,248      2,892

Depreciation

      86      69

Amortization of intangible assets

      9,344      6,531

Income tax provision

      5,814      7,745
  

 

 

     

 

 

  

Non-GAAP net income

    $ 46,767    $ 46,805
  

 

 

     

 

 

  

Non-GAAP net income per share:

      

Basic

    $ 0.40    $ 0.44
  

 

 

     

 

 

  

Diluted

    $ 0.38    $ 0.41
  

 

 

     

 

 

  

Weighted average shares outstanding:

      

Basic

      116,806,117        105,561,229  
  

 

 

     

 

 

  

Diluted

      123,403,626        113,986,129  
  

 

 

     

 

 

  

CATALYST PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

     March 31,
2024		      December 31,
2023		  
     (unaudited)         

ASSETS

      

Current Assets:

      

Cash and cash equivalents

    $ 310,411      $ 137,636  

Accounts receivable, net

      60,493        53,514  

Inventory

      19,953        15,644  

Prepaid expenses and other current assets

      13,745        12,535  
  

 

 

     

 

 

  

Total current assets

      404,602        219,329  

Operating lease right-of-use asset

      2,440        2,508  

Property and equipment, net

      1,308        1,195  

License and acquired intangibles, net

      184,705        194,049  

Deferred tax assets, net

      38,276        36,544  

Investment in equity securities

      15,345        16,489  
  

 

 

     

 

 

  

Total assets

    $ 646,676      $ 470,114  
  

 

 

     

 

 

  

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Current Liabilities:

      

Accounts payable

    $ 10,261      $ 14,795  

Accrued expenses and other liabilities

      69,305        61,268  
  

 

 

     

 

 

  

Total current liabilities

      79,566        76,063  

Operating lease liability, net of current portion

      3,091        3,188  

Other non-current liabilities

      2,607        2,982  
  

 

 

     

 

 

  

Total liabilities

      85,264        82,233  

Total stockholders’ equity

      561,412        387,881  
  

 

 

     

 

 

  

Total liabilities and stockholders’ equity

    $ 646,676      $ 470,114  
  

 

 

     

 

 

  

Source: Catalyst Pharmaceuticals, Inc.

Contact Information:

Investor Contact

Mary Coleman, Catalyst Pharmaceuticals, Inc.

(305) 420-3200

mcoleman@catalystpharma.com

Media Contact

David Schull, Russo Partners

(858) 717-2310

david.schull@russopartnersllc.com

v3.24.1.u1
Document and Entity Information
May 08, 2024
Cover [Abstract]  
Security Exchange Name NASDAQ
Amendment Flag false
Entity Central Index Key 0001369568
Document Type 8-K
Document Period End Date May 08, 2024
Entity Registrant Name CATALYST PHARMACEUTICALS, INC.
Entity Incorporation State Country Code DE
Entity File Number 001-33057
Entity Tax Identification Number 76-0837053
Entity Address, Address Line One 355 Alhambra Circle
Entity Address, Address Line Two Suite 801
Entity Address, City or Town Coral Gables
Entity Address, State or Province FL
Entity Address, Postal Zip Code 33134
City Area Code (305)
Local Phone Number 420-3200
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common Stock, par value $0.001 per share
Trading Symbol CPRX
Entity Emerging Growth Company false
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