Catalyst Pharma Shares Climb on Patent Suit Settlement
Deal with Lupin bars generic FIRDAPSE entry until 2035, extending market exclusivity for the rare disease drug and boosting investor confidence.
Catalyst Pharmaceuticals (CPRX) saw its shares gain 2.75% after announcing a settlement in its patent litigation with Lupin Pharmaceuticals over FIRDAPSE, a key treatment for a rare autoimmune disease. The agreement prevents Lupin from launching a generic version of the drug in the U.S. until February 2035, securing a longer period of market exclusivity for Catalyst's flagship product.
The settlement resolves all ongoing patent disputes between the two companies in the U.S. District Court for the District of New Jersey. This is the third such agreement Catalyst has reached to protect its FIRDAPSE patents, following similar deals with Teva Pharmaceuticals and Inventia Life Science. Litigation against one remaining generic drugmaker, Hetero, is still pending.
FIRDAPSE is a crucial revenue driver for Catalyst, and the series of settlements reinforces the company's strategy to defend its intellectual property and market position. The company, which focuses on developing and commercializing treatments for rare diseases, recently reported strong second-quarter 2025 earnings that surpassed analyst expectations. The company posted earnings per share of $0.68, significantly above the forecasted $0.39, with revenue reaching $146.54 million against an anticipated $140.22 million.
The settlement agreement will be submitted to the U.S. Federal Trade Commission and the Department of Justice for review, a standard procedure in such cases. The resolution of the Lupin litigation, combined with strong financial performance, has provided a positive catalyst for the stock, as investors cheer the extended exclusivity for the company's main product.