Jeffrey Del Carmen
CATALYST PHARMACEUTICALSAbout Jeffrey Del Carmen
Jeffrey Del Carmen is Executive Vice President and Chief Commercial Officer (CCO) at Catalyst Pharmaceuticals. He has been an executive officer since June 2020 and EVP since January 1, 2024; age 54; education includes a BA in Economics (University of Dayton) and an Executive MBA (University of Wisconsin) . Company performance during his recent tenure: 2024 net product revenue $489.3 million and net income $163.9 million; cumulative TSR value of $100 rose to 557 in 2024 from 496 in 2022, underscoring strong commercial execution in orphan neurology .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Abbott Laboratories | Various sales/marketing leadership roles | ~16 years (dates not disclosed) | Built foundational commercial leadership across multiple therapeutic areas . |
| Lundbeck Inc. | Movement Disorder National Sales Director (final two years) | Aug 2011–Jan 2016 | Led movement disorders commercial team; broadened specialty sales leadership . |
| Insys Therapeutics | Vice President of Sales | Jan 2016–Aug 2016 | Ran sales organization; short-tenure transition role . |
| Marathon Pharmaceuticals | Senior Director, Rare Disease Marketing | Sep 2016–Jun 2017 | Led Emflaza commercialization planning in rare disease; asset later acquired by PTC Therapeutics . |
| Paragon Biosciences | Vice President, Business Development | Jan 2018–Jul 2018 | Evaluated commercial assets to expand portfolio; BD orientation . |
| Catalyst Pharmaceuticals | SVP Sales & Marketing; CCO; EVP | Jul 2018–present; CCO since Jun 23, 2020; EVP since Jan 1, 2024 | Scaled rare disease commercial footprint; delivered revenue and product lifecycle initiatives . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No external directorships disclosed in proxy’s Executive Officers section . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 449,000 | 475,000 | 525,000 |
| Actual Cash Bonus ($) | 211,200 | 256,500 | 275,625 (paid at 105% of target company-wide) |
| All Other Compensation ($) | 51,502 | 68,319 | 62,372 (includes housing allowance; 401(k) match) |
| Total Compensation ($) | 2,386,432 | 2,506,066 | 2,638,127 |
Note: The Compensation Committee approved 2024 cash bonuses at 105% of target based on revenue beats, licensing progress, budget discipline, and AGAMREE lifecycle planning; the acquisition goal was not achieved but evaluated extensively .
Performance Compensation
| Metric | Weight | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|
| Total revenue | 40% | ≥$475m (FIRDAPSE ≥$301.6m; AGAMREE ≥$20m) | ~$492m total; FIRDAPSE ~$306m; AGAMREE ~$46m | Component overachieved; overall payout 105% of target | Annual cash bonus for FY2024 |
| Transformational acquisition | 30% | Acquire significant company or de-risked late-stage orphan asset | Not achieved; >100 opportunities evaluated, 3 term sheets entered but not consummated | Considered in aggregate; overall payout 105% of target | Annual cash bonus for FY2024 |
| Global expansion (licensing) | 10% | Out-license AGAMREE or FIRDAPSE in APAC/LATAM | AGAMREE out-licensed in Canada (KYE Pharma) | Contributed to overall 105% payout | Annual cash bonus for FY2024 |
| Operate to budget | 10% | Operate to 2024 budget | ~$32m favorable net income vs budget | Contributed to overall 105% payout | Annual cash bonus for FY2024 |
| AGAMREE lifecycle plan | 10% | Board adoption by Aug 2024 | Plan approved Aug 2024 | Contributed to overall 105% payout | Annual cash bonus for FY2024 |
Equity awards granted for 2024 services (granted Nov 21, 2024):
- Stock options: 137,553 at $21.12 strike; vest 1/3 annually over 3 years; 7-year term .
- RSUs: 16,809; vest 1/3 annually over 3 years; grant-date fair value $355,006 .
| Equity Award | Grant Date | Quantity | Strike/Value | Vesting | Expiration |
|---|---|---|---|---|---|
| Stock Options | 11/21/2024 | 137,553 | $21.12 | 1/3 annually from 11/21/2025 | 11/21/2031 |
| RSUs | 11/21/2024 | 16,809 | $355,006 fair value | 1/3 annually from 11/21/2025 | Shares delivered upon vest |
Equity Ownership & Alignment
- Total beneficial ownership: 580,621 shares beneficially owned via currently exercisable options; <1% of shares outstanding .
- Hedging/pledging: Company prohibits hedging, short sales, and pledging/margining by officers and directors (alignment positive) .
- Ownership guidelines: Not disclosed in proxy.
Exercisable options profile (as of Dec 31, 2024):
| Exercise Price ($) | Quantity Exercisable (#) | Notes |
|---|---|---|
| 4.21 | 10,983 | 01/06/2027 expiration |
| 4.70 | 120,000 | 06/23/2027 expiration |
| 3.42 | 200,000 | 12/30/2027 expiration |
| 7.07 | 135,000 | 12/28/2028 expiration |
| 18.59 | 58,666 | 12/27/2029 expiration |
| 14.15 | 55,972 | Expiration shown as 12/08/3030 in table (proxy typo) |
Unvested awards and upcoming vesting (as of Dec 31, 2024):
| Type | Quantity | First Vest Date | Schedule |
|---|---|---|---|
| Options @ $4.70 | 30,000 | 06/23/2025 | Single tranche |
| Options @ $18.59 | 29,334 | 12/27/2025 | Single tranche |
| Options @ $14.15 | 111,946 | Begins 12/08/2025 | Two annual tranches from 12/08/2025 |
| Options @ $21.12 | 137,553 | Begins 11/21/2025 | Three annual tranches from 11/21/2025 |
| RSUs | 8,667 | 12/27/2025 | Single tranche |
| RSUs | 16,078 | Begins 12/08/2025 | Two annual tranches from 12/08/2025 |
| RSUs | 16,809 | Begins 11/21/2025 | Three annual tranches from 11/21/2025 |
Insider option exercise activity (2024):
| Grant Date | Exercise Date | Quantity | Exercise Price ($/share) |
|---|---|---|---|
| 08/06/2018 | 08/09/2024 | 30,000 | 2.86 |
At the Record Date, the market price was $24.25, making many existing options in-the-money (strike range $3.42–$21.12) .
Employment Terms
Role history and tenure:
| Role | Effective Date | Executive Officer Since |
|---|---|---|
| Senior Vice President, Sales & Marketing | Jul 2018 | — |
| Chief Commercial Officer | Jun 23, 2020 | Jun 2020 |
| Executive Vice President | Jan 1, 2024 | — |
Severance and change-in-control economics:
| Provision | Terms |
|---|---|
| Termination without cause / for good reason | 1 year base salary ($525,000 for Del Carmen), any accrued bonus, 12 months accelerated option vesting, and 1-year benefits continuation; subject to non-compete during severance period . |
| Change in control (CIC) | All outstanding stock options and other equity awards not yet vested automatically vest (single-trigger acceleration) . |
| Termination within 1 year post-CIC | 1 year base salary ($525,000 for Del Carmen), payment in full of any target bonus for the severance period, and benefits continuation; subject to non-compete during severance period . |
| Amounts table | Payment due upon termination or CIC for Del Carmen: $525,000 (excludes bonus, benefits, accelerated vesting values) . |
Clawback provisions and ownership guidelines: Not disclosed in proxy; Insider Trading Policy prohibits hedging and pledging .
Non-compete: Required during the severance payment period to receive severance benefits .
Company Performance During Del Carmen’s Tenure
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Product Revenue ($000s) | 213,938 | 396,502 | 489,327 |
| Net Income ($000s) | 83,079 | 71,410 | 163,889 |
| Company TSR (Value of $100) | 496 | 448 | 557 |
| Peer Group TSR (Value of $100, Nasdaq Biotech Index) | 69 | 54 | 88 |
Key achievements (2024):
- Exceeded revenue targets (total ~$492m; FIRDAPSE ~$306m; AGAMREE ~$46m), operated ~$32m favorable to budget, secured AGAMREE out-license in Canada, and Board approved AGAMREE lifecycle plan; acquisition goal not met after extensive diligence; bonuses paid at 105% of target .
Compensation Mix Trends (Del Carmen)
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| RSU Grants ($) | 725,900 | 341,256 | 355,006 |
| Stock Options ($) | 948,830 | 1,364,991 | 1,420,124 |
Observation: Increasing emphasis on options vs RSUs over 2022–2024, raising at-risk equity leverage and potential sensitivity to stock price movements .
Investment Implications
- Pay-for-performance alignment: Corporate bonus framework tied to revenue, licensing, budget discipline, and lifecycle planning resulted in 105% payout despite no acquisition, indicating robust operational delivery and some committee discretion; this supports near-term commercial execution but introduces governance scrutiny on upward adjustments when strategic M&A targets are missed .
- Selling pressure watch: Significant tranches of options and RSUs begin vesting in late 2025 and 2026 (notably 111,946 options @ $14.15 and 137,553 options @ $21.12); coupled with in-the-money status at $24.25, monitor Form 4s for potential exercises/sales around these dates; a 30,000 option exercise occurred in Aug 2024 .
- Alignment and risk: Beneficial ownership is entirely via exercisable options (<1%), and pledging/hedging are prohibited, indicating clean alignment without collateral risk; however, CIC features include single-trigger vesting of all equity, which can be shareholder-unfriendly in sale scenarios and may elevate deal timing considerations .
- Retention dynamics: Severance equals 1x base salary with non-compete during severance; combined with multi-year vesting schedules and ongoing equity grants, near-term retention risk appears contained, but watch for market-driven monetization of in-the-money awards as vesting accelerates .