Richard Daly
CATALYST PHARMACEUTICALSAbout Richard Daly
Richard J. Daly, age 64, is Director, President, and CEO of Catalyst Pharmaceuticals (CPRX), serving as CEO since January 1, 2024 and on the board since 2015 . He holds a B.S. in Microbiology from Notre Dame and an MBA from Kellogg (Northwestern) . Company performance under his tenure includes 2024 net product revenue of $489,327 thousand and GAAP net income of $163,889 thousand, with cumulative TSR value of an initial $100 investment rising to $557 by year-end 2024, reflecting strong execution and shareholder value creation . In Q3 2025, the company reported total revenue of $148.4 million and raised 2025 revenue guidance to $565–$585 million, underscoring continued momentum .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| CARsgen Therapeutics Corporation | President | Jan 2022–Aug 2023 | Led oncology-focused CAR-T developer; senior operating leadership |
| BeyondSpring Pharmaceuticals | Chief Operating Officer | Jul 2018–Jan 2022 | Scaled late Phase 3 oncology assets; pre-commercial operations |
| Neuralstem, Inc. | Chairman & CEO | Feb 2016–Jul 2018 | Led CNS therapy platform; corporate leadership |
| RavineRock Partners | Partner | Oct 2014–Sep 2016 | Commercial consulting in biotech/pharma |
| AstraZeneca US Diabetes | President | Feb 2013–Sep 2014 | Led a $1.2B revenue division; launched orphan rare disorder drug Myalept |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Opiant Pharmaceuticals | Director; Compensation & Audit Committees | 2018–2023 | Governance oversight until company sale |
| Synergy Pharmaceuticals | Director; Chaired Nominations/Corporate Governance; Compensation Committee member | 2015–2018 | Board leadership, governance |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | — | — | 750,000 |
| Target Bonus (% of salary) | — | — | 75% |
| Actual Bonus Paid ($) | — | — | 590,625 (paid at 105% of target) |
| All Other Compensation ($) | — | — | 95,104 (incl. housing allowance, 401(k) match) |
Performance Compensation
| Metric | Weight | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|
| Total Revenues (FY 2024) | 40% | ≥ $475M | ≈ $492M | 105% of target for execs | Annual cash bonus; paid for 2024 performance |
| FIRDAPSE Net Product Revenue (FY 2024) | — (part of revenue) | ≥ $301.6M | ≈ $306M | 105% of target for execs | Annual cash bonus |
| AGAMREE Net Product Revenue (FY 2024) | — (part of revenue) | ≥ $20M | ≈ $46M | 105% of target for execs | Annual cash bonus |
| Out-license AGAMREE/FIRDAPSE in APAC/LATAM | 10% | Agreement executed | Canada out-license signed (KYE Pharma) | 105% of target for execs | Annual cash bonus |
| Operate to 2024 Budget | 10% | On-budget | ~$32M favorable net income vs budget | 105% of target for execs | Annual cash bonus |
| Adopt AGAMREE LCM Strategy | 10% | Board adoption by Aug 2024 | Adopted in Aug 2024 meeting | 105% of target for execs | Annual cash bonus |
| Significant company or de-risked late-stage orphan asset acquisition (CNS/adjacent) | 30% | Complete by YE 2024 | Not closed; evaluated >100 opportunities; 3 term sheets | Committee discretion → overall 105% payout | Annual cash bonus |
Equity Awards (Grants and Vesting)
| Grant Date | Instrument | Quantity | Price | Vesting Schedule |
|---|---|---|---|---|
| Oct 18, 2023 | Stock Options | 1,365,319 | $13.30 | 5 equal annual installments beginning Jan 1, 2025 |
| Oct 18, 2023 | RSUs | 210,526 | — | 5 equal annual installments beginning Jan 1, 2025 |
| Nov 21, 2024 | Stock Options | 491,160 | $21.12 | 3 equal annual installments starting Nov 21, 2025; 7-year term |
| Nov 21, 2024 | RSUs | 60,019 | — | 3 equal annual installments starting Nov 21, 2025 |
| Historic Options (exercisable) | Stock Options | 50,000; 33,500; 30,000; 20,000; 10,000 | $2.24; $4.64; $3.42; $7.07; $18.59 | Various expirations through 2029 |
| Options Exercise (2024) | Stock Options | 40,000 | $4.01 | Exercised June 4, 2024 |
Equity Ownership & Alignment
| As-of Date | Total Beneficial Ownership (Shares) | % of Outstanding | Key Components |
|---|---|---|---|
| Mar 31, 2025 (Record Date) | 686,327 | <1% | Includes 416,563 exercisable options (with strike prices $2.24–$18.59); excludes unvested 1,092,256 options @ $13.30; 491,160 @ $21.12; and RSUs (1,334; 168,421; 60,019) |
| Mar 28, 2024 (Record Date) | 383,980 | <1% | Includes 171,833 exercisable options; excludes unvested 1,365,319 options @ $13.30 and RSUs (210,526 + smaller grants) |
- Hedging and pledging are prohibited by company policy; executives and directors may not hedge or pledge company stock, reducing alignment risks .
- Outstanding equity awards (Dec 31, 2024) include large multi-year unvested tranches; next vest events begin Jan 1, 2025 and Nov 21, 2025, indicating potential ongoing supply from vesting but with anti-hedging/pledging constraints .
Employment Terms
| Provision | Terms |
|---|---|
| Severance (termination without cause or for good reason) | One year’s base salary; accrued bonus; 12-month accelerated vesting of stock options; 12 months benefits continuation; non-compete during severance period |
| Change-in-Control (single trigger) | All outstanding stock options and equity awards may automatically vest at CoC, at Compensation Committee discretion |
| CoC + termination within one year (double trigger) | One year’s base salary; payment in full of any target bonus for the severance period; benefits continuation; non-compete during severance period |
| CEO Severance Illustration | Payment due upon termination or CoC: $750,000 (base salary), excluding benefits/bonus accruals and accelerated equity vesting |
Board Governance and Director Service
- Daly is a Director and CEO; not independent under Nasdaq rules. The board has a majority of independent directors; all committees are composed solely of independent directors .
- Committee memberships: Daly is not listed on any committee; current committees and chairs include Audit (Chair: Donald A. Denkhaus), Compensation (Chair: David S. Tierney, M.D.), Corporate Governance & Nominating (Chair: Tamar Thompson) .
- Leadership structure: Non-Executive Chairman Patrick J. McEnany; Lead Independent Director transitioned from Charles B. O’Keeffe to Molly Harper after the 2025 meeting, providing independent oversight of agendas and executive sessions .
- Board meeting attendance in 2024: all directors attended ≥75% of aggregate meetings; 2024 Annual Meeting attendance was full .
Director Compensation (historical, Daly as non-employee director)
| Year | Cash Fees ($) | Stock-Based Awards ($) | Total ($) |
|---|---|---|---|
| 2023 | 68,125 | 14,008,798 (reflects CEO transition grants recorded in director section) | 14,076,923 |
Company Performance Context (Pay vs Performance)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Product Revenue ($000s) | 213,938 | 396,502 | 489,327 |
| Net Income ($000s) | 83,079 | 71,410 | 163,889 |
| Total Shareholder Return (value of $100 investment) | 496 | 448 | 557 |
Compensation Peer Group (for setting 2024 pay)
Peer group used in fall 2023: Acadia, Amicus, Amphastar, ANI, Collegium, Corcept, Dynavax, Halozyme, Harmony Biosciences, Insmed, Ionis, Ironwood, Pacira, PTC Therapeutics, Supernus, Ultragenyx; selection criteria targeted U.S. biopharma with projected 2024 product revenues ~ $480 million .
Risk Indicators & Red Flags
- Hedging and pledging prohibited; insider trading policy filed as an exhibit and Section 16 compliance timely for 2024, reducing alignment risks and regulatory exposure .
- No related party transactions since 2023; governance structures include independent committees and regular executive sessions .
- IP defense: settled FIRDAPSE patent litigation with Teva and Lupin for 2035 entry; one remaining case (Hetero) scheduled for March 2026; management commits to vigorous IP defense .
Investment Implications
- Pay-for-performance alignment: Cash bonuses tied to clear operational metrics (revenue, product uptake, BD milestones), with disciplined payouts (105% in 2024) reflecting above-plan execution (notably AGAMREE/FIRDAPSE outperformance) . Equity grants vest over 3–5 years, aligning incentives with multi-year value creation but creating predictable vesting events starting in 2025 .
- Retention risk: Severance and CoC protections (single-trigger equity vesting; one-year salary/bonus on double-trigger) are standard but generous on equity, lowering departure friction for a change-of-control scenario; non-compete linked to severance mitigates immediate competitive risk .
- Insider selling pressure: 2025–2029 vesting cadence from large 2023/2024 grants indicates potential periodic supply; anti-hedging/pledging policies and structured trading windows moderate abrupt selling risk. Daly’s 2024 option exercise (40,000 shares) was modest relative to total holdings .
- Governance: Dual role as CEO/Director is mitigated by non-executive Chair and Lead Independent Director structure, independent committees, and regular executive sessions—reducing independence concerns typical of CEO-chairman combinations (not present here) .
Overall, Daly’s compensation emphasizes multi-year equity and operationally grounded cash incentives, aligned with revenue growth and product execution. With robust 2024 results and raised 2025 guidance, incentive structures appear appropriately calibrated to the company’s scale and growth trajectory .