Preethi Sundaram
CATALYST PHARMACEUTICALSAbout Preethi Sundaram
Catalyst Pharmaceuticals’ Chief Strategy Officer (CSO) since January 1, 2022; previously Chief Product Development Officer from July 2021. Age 49. Background spans >20 years in global medical operations and program leadership across Sanofi, Abbott, Covance, Neurovision & Medical Services, West Norwich Hospital (UK), and Sankara Nethralaya (India). Education: BA (Psychology, Univ. of Madras), BS (Optometry, Elite School of Optometry & BITS), PhD (Optometry, Anglia Ruskin Univ., UK), Executive Business Masters (London Business School) . Company performance context during tenure: 2024 net product revenue $489.3M and net income $163.9M; cumulative TSR value of $100 investment measured at $557 (company method) for 2022–2024 cohort .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Sanofi | Global Clinical Research Director, International Development | 2005–2010 | Led clinical/medical programs across geographies |
| Sanofi | Global Project Head, Multiple Therapeutic Area Programs | 2010–2017 | Drove cross-TA development portfolio execution |
| Sanofi | Global Head & VP, Medical Operations, Primary Care BU | 2017–2020 | Oversaw global medical operations and portfolio delivery |
| Sanofi | Global Head & VP, Medical Operations, General Medicines BU | Oct 2020–2021 | Accountable for portfolio financials and strategic milestones; led multiple portfolio management functions |
| Abbott Laboratories | Project Lead, Immunoscience Development Center | Pre-2005 | Program leadership in immunoscience |
| Covance | Medical Writer and Project Lead | 2003–2005 | Clinical/medical writing and project leadership |
| Neurovision & Medical Services | Clinical Director | 2001–2003 | Clinical leadership role |
| West Norwich Hospital (Cambridge, UK) | Graduate Teaching Assistant and Clinical Supervisor | 1997–2001 | Academic/clinical supervision |
| Sankara Nethralaya Eye Hospital (Chennai, India) | Clinical Faculty | 1995–1997 | Clinical faculty role |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Cilcare (private biotech in auditory sciences) | Board of Directors | Dec 2024–Present | External board experience in auditory sciences |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base salary ($) | 415,674 | 440,000 | 485,000 |
| Actual cash bonus ($) | 226,600 | 237,600 | 254,625 |
| RSU grant fair value ($) | 750,800 | 290,995 | 355,006 |
| Stock option grant fair value ($) | 733,187 | 1,164,003 | 1,420,124 |
| All other compensation ($) | 12,200 | 13,200 | 13,800 |
- 2024 bonus paid at 105% of target for all executive officers; implied target bonus for Dr. Sundaram ≈ $242,500 (≈50% of base) given actual $254,625 and 105% payout .
Performance Compensation
Annual Bonus Plan (2024)
| Metric | Weight | Target | Actual 2024 | Payout |
|---|---|---|---|---|
| Total revenues | 40% | ≥$475M | ≈$492M | 105% of target payout for executives |
| FIRDAPSE net product revenue | — (part of total) | ≥$301.6M | ≈$306M | 105% |
| AGAMREE net product revenue | — (part of total) | ≥$20M | ≈$46M | 105% |
| Acquisition (company or de-risked late-stage orphan asset) | 30% | Acquisition by YE 2024 | Not achieved (evaluated >100 opportunities; 3 term sheets) | 105% overall payout despite shortfall |
| Global expansion (out-license AGAMREE or FIRDAPSE, APAC/LATAM) | 10% | One agreement | AGAMREE Canada out-license with KYE Pharmaceuticals (July 2024) | 105% |
| Operate to budget | 10% | To plan | ≈$32M favorable net income vs budget | 105% |
| AGAMREE lifecycle plan adoption | 10% | Board adoption by Aug 2024 | Approved Aug 2024 | 105% |
Notes: The Compensation Committee determined executive bonuses at 105% of targets after holistic review of results .
2024 Equity Awards – Detail
| Award type | Grant date | Quantity | Strike/Price | Vesting | Expiration | Grant date fair value ($) |
|---|---|---|---|---|---|---|
| Stock options | 11/21/2024 | 137,553 | $21.12 | 1/3 each year over 3 years | 11/21/2031 | 1,420,124 |
| RSUs | 11/21/2024 | 16,809 | — | 1/3 each year over 3 years | — | 355,006 |
Historical equity grant values for context shown in Fixed Compensation table above .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership (shares) | 355,569; less than 1% of outstanding |
| Options exercisable (included in beneficial ownership) | 310,564 (150,000 @ $5.49; 67,500 @ $7.07; 45,333 @ $18.59; 47,731 @ $14.15) |
| Unexercisable options (future vesting) | 75,000 @ $5.49 vest 7/6/2025; 22,667 @ $18.59 vest 12/27/2025; 95,462 @ $14.15 vest in two annual tranches beginning 12/8/2025; 137,553 @ $21.12 vest in three annual tranches beginning 11/21/2025 |
| Unvested RSUs (future delivery) | 6,667 vest 12/27/2025; 13,710 vest in two annual tranches beginning 12/8/2025; 16,809 vest in three annual tranches beginning 11/21/2025 |
| Hedging and pledging | Prohibited for officers and directors (no hedging; no pledging/margin) |
| 2024 insider option exercises | None disclosed for Dr. Sundaram in 2024 option exercise table |
Implications: Multiple 2025–2027 vesting events could create potential selling windows; however, policy prohibits hedging/pledging and no 2024 exercises were disclosed for Dr. Sundaram .
Employment Terms
| Scenario | Economics/Terms |
|---|---|
| Termination without cause or resignation for good reason | 1x base salary; accrued bonus; 12 months accelerated vesting of stock options; 12 months benefits continuation; non-compete during severance period |
| Change in control (CIC) | All outstanding stock options and other equity awards automatically vest for designated executives (single-trigger equity acceleration) |
| Termination within 1 year post-CIC | 1x base salary; payment in full of target bonus for severance period; benefits continuation; subject to non-compete during severance period (double-trigger cash) |
| Designation under plan | Dr. Sundaram is designated to receive benefits under the severance and CIC plan |
Performance & Track Record
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Net product revenue ($000s) | 213,938 | 396,502 | 489,327 |
| Net income ($000s) | 83,079 | 71,410 | 163,889 |
| Cumulative TSR value of $100 (company method) | 496 | 448 | 557 |
Key 2024 operational achievements tied to incentives: exceeded revenue targets (total revenue ≈$492M; FIRDAPSE ≈$306M; AGAMREE ≈$46M), executed AGAMREE Canada out-license, operated ahead of budget, and secured Board approval of AGAMREE lifecycle plan; M&A target not completed despite extensive evaluation, resulting in 105% payout on annual bonus .
Compensation Committee Analysis and Peer Group
- Independent Compensation Committee (3 members) overseeing executive pay and 2018 Stock Incentive Plan administration .
- 2024 peer group (selected with Mercer) included: Acadia, Amicus, Amphastar, ANI, Collegium, Corcept, Dynavax, Halozyme, Harmony Biosciences, Insmed, Ionis, Ironwood, Pacira, PTC Therapeutics, Supernus, Ultragenyx; selected around projected 2024 product revenues and market practices .
Investment Implications
- Pay-for-performance alignment: 2024 bonus tied to clear operating KPIs (revenue mix, out-licensing, budget discipline) with modest 105% payout; long-term equity mostly time-based options/RSUs with multi-year vesting—more retention than pure performance equity .
- Retention risk: Single-trigger equity acceleration on CIC plus 1x salary and target bonus on double-trigger termination may reduce stickiness in a sale but multi-year vesting cadence (notably Nov/Dec 2025 onwards) supports near-term retention; non-compete applies during severance .
- Insider selling pressure: No 2024 exercises disclosed for Dr. Sundaram; significant upcoming vesting in late 2025–2027 could add supply depending on personal liquidity needs and windows; hedging/pledging prohibited .
- Ownership alignment: <1% ownership with substantial vested options creates leverage to upside; no pledging allowed; company-wide equity plan expanded in 2025 to sustain talent incentives (adds 5M shares) .
- Execution track record: Company materially exceeded 2024 revenue targets and advanced partnering strategy; M&A pipeline active but disciplined; financial outcomes (higher net income, strong TSR per company method) support incentive payouts .