Catalyst Pharmaceuticals Reports Record Fourth Quarter and Full Year 2024 Financial Results and Provides Business Update

Rhea-AI Summary

Catalyst Pharmaceuticals (CPRX) reported strong financial results for Q4 and full year 2024, with total revenues reaching $491.7 million, marking a 23.5% year-over-year growth. The company's portfolio performance was driven by three key products: FIRDAPSE® ($306.0M), AGAMREE® ($46.0M), and FYCOMPA® ($137.3M).

Q4 2024 revenues were $141.8 million, up 28.3% YoY, with GAAP net income of $55.9 million. The company projects 2025 total revenues between $545-565 million, with FIRDAPSE expected to generate $355-360M, AGAMREE $100-110M, and FYCOMPA $90-95M.

Notable achievements include AGAMREE's successful US launch, FIRDAPSE's FDA-approved dose increase, and a settlement agreement with Teva regarding patent litigation. The company ended 2024 with $517.6 million in cash and cash equivalents.

Positive

• Record revenue growth of 23.5% YoY to $491.7M in 2024
• Strong cash position of $517.6M as of December 2024
• FIRDAPSE revenue grew 18.4% YoY to $306.0M
• Successful AGAMREE launch generating $46.0M in first year
• Operating income increased 124.8% to $195.1M in 2024
• Patent settlement with Teva securing FIRDAPSE exclusivity until 2035

Negative

• FYCOMPA facing patent expiry and generic competition in 2025
• Increased R&D expenses expected ($15-20M) in 2025
• Higher SG&A expenses anticipated in 2025
• Additional royalty payments required when AGAMREE revenue exceeds $100M

Insights

Financial Analyst

Catalyst Pharmaceuticals delivered exceptional financial performance for 2024, with $491.7 million in total revenues (23.5% YoY growth) and operating income of $195.1 million (124.8% increase). This substantial operating income growth significantly outpaced revenue growth, demonstrating improved operational leverage and favorable product mix as higher-margin products gained traction.

The revenue composition reveals a diversified portfolio strategy: FIRDAPSE remains the cornerstone at $306 million (18.4% YoY growth), while newly-launched AGAMREE contributed $46 million in its first year. Management's 2025 guidance projects AGAMREE revenues more than doubling to $100-110 million, indicating strong market adoption and becoming a critical growth driver.

The settlement agreement with Teva represents a significant strategic win, effectively protecting FIRDAPSE from generic competition until 2035. This secures the company's primary revenue stream for a decade, creating a stable foundation for expansion efforts. Meanwhile, FYCOMPA faces patent expiration challenges in 2025, with anticipated generic competition likely to erode its $90-95 million projected contribution.

With $517.6 million in cash and no announced dividend or buyback program, Catalyst appears positioned for additional acquisitions to further diversify its portfolio. The planned separation of commercial teams for FIRDAPSE and AGAMREE in Q2 2025 signals dedication to specialized market approaches for each product line.

Increased R&D investment ($15-20 million projected for 2025) focused on expanding AGAMREE indications through the SUMMIT study represents a forward-looking strategy to extend the product's commercial potential beyond its current Duchenne muscular dystrophy approval. However, investors should note that once AGAMREE reaches $100 million in annual sales, higher royalty rates and a $12.5 million milestone payment will impact margins.

Pharmaceutical Industry Expert

Catalyst's 2024 performance demonstrates exceptional execution in the rare disease space, with a strategically diversified portfolio targeting underserved patient populations. The continued growth of FIRDAPSE (18.4% YoY) is particularly impressive for a mature rare disease product, suggesting either improved diagnosis rates for LEMS or increased market penetration among diagnosed patients.

The FDA's approval of increased FIRDAPSE dosing (100mg daily) represents a significant clinical advancement. This higher dosing option allows neurologists to optimize treatment for patients who may have had suboptimal responses at lower doses, potentially expanding the effectively treated patient population and strengthening the product's clinical utility.

AGAMREE's successful launch and projected growth trajectory ($46 million to $100-110 million) highlights Catalyst's effective entry into the Duchenne muscular dystrophy market. As a first-in-class dissociative steroid, AGAMREE offers a differentiated mechanism compared to traditional corticosteroids like prednisone and deflazacort, potentially providing improved safety while maintaining efficacy. The initiated SUMMIT study will track patients for five years, potentially generating compelling long-term safety data that could further differentiate AGAMREE in a treatment landscape where chronic therapy necessitates careful risk-benefit assessment.

The company's strategic decision to separate commercial teams for FIRDAPSE and AGAMREE in Q2 2025 recognizes the distinct physician specialties they target – neurologists for LEMS versus neuromuscular specialists for DMD. This specialized approach should optimize engagement with treating physicians and support continued growth for both products.

FYCOMPA faces a challenging 2025 with staggered patent expirations (tablets in May, oral suspension in December). The projected $90-95 million revenue likely reflects anticipated inventory stocking ahead of generic entry followed by progressive erosion. The increased R&D investment signals Catalyst's intent to potentially expand AGAMREE beyond DMD to additional rare diseases where its anti-inflammatory properties could provide clinical benefit, creating new growth avenues beyond the current indication.

Full Year 2024 Total Revenues of $491.7 Million, Marking Another Year of Record Growth

Full Year 2024 Total Revenues Grew 23.5% YoY, Driven by Strong Commercial Performance

Q4 2024 Net Product Revenue of $141.8 Million, Fueled by Sustained Organic Growth of FIRDAPSE® and Continued Market Adoption of AGAMREE®

Pursuing Strategic Investments to Expand Market Presence and Accelerate Growth

Full Year 2025 Total Revenues Expected to be Between $545 Million and $565 Million, Reflecting Confidence in Continued Growth Momentum

Conference Call and Webcast to be Held on February 27, 2025, at 8:30 AM ET

CORAL GABLES, Fla., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Catalyst Pharmaceuticals, Inc. (“Catalyst” or “Company”) (Nasdaq: CPRX) today reported financial results for the fourth quarter and full year 2024 and provided a business update.

“Our record 2024 performance is a reflection of Catalyst’s successful launch of AGAMREE and our continued outstanding commercial capabilities that fuel the momentum of our existing products,” said Richard J. Daly, President and CEO of Catalyst. “Achieving total revenues for 2024 of $491.7 million demonstrates the strength of our scalable business model and the dedication of our teams to patient care.  In 2025, we intend to not only seek to continue successfully growing our revenues from sales of our existing products, but also to continue our robust business development efforts, our efforts to protect FIRDAPSE’s intellectual property, and our efforts to increase the geographical availability of FIRDAPSE for LEMS patients.”

Financial Highlights

For the Years Ended December 31,	2024	2023	% Change
(in thousands, except per share data)
Product Revenue, Net	$489,327	$396,502	23.4%
FIRDAPSE Product Revenue, Net	$306,035	$258,426	18.4%
FYCOMPA Product Revenue, Net	$137,251	$138,076	(0.6%)
AGAMREE Product Revenue, Net	$46,041	N/A	N/A
GAAP Net Income	$163,889	$71,410	129.5%
Non-GAAP Net Income**	$276,288	$141,642	95.1%
GAAP Net Income Per Share – Basic	$1.38	$0.67	106.0%
Non-GAAP Net Income Per Share – Basic**	$2.33	$1.33	75.2%
GAAP Net Income Per Share – Diluted	$1.31	$0.63	107.9%
Non-GAAP Net Income Per Share – Diluted**	$2.21	$1.25	76.8%
Cash and Cash Equivalents (as of December 31)	$517,553	$137,636	276.0%

**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.

Beginning with the third quarter of 2024, Catalyst no longer includes acquisition in-process research and development ("IPR&D") in its non-GAAP financial measures. Reported non-GAAP net income for the year ended December 31, 2023, included $81.5 million in acquisition IPR&D relating to Catalyst's acquisition, during the third quarter of 2023, of the North American license for AGAMREE, which had not yet been approved by the U.S. Food and Drug Administration (“FDA”) at the time of the acquisition. The commercialization was subsequently approved by the FDA during the fourth quarter of 2023. Prior period amounts have been revised to conform to the current period presentation. Catalyst has made this change to its presentation following discussions with the Staff of the Division of Corporation Finance of the U.S. Securities and Exchange Commission.

Full Year 2024 Financial Highlights:

Full year 2024 financial results underscore robust revenue expansion, supported by sustained organic momentum, a successful product launch, and strong portfolio performance.

• Full year 2024 total revenues were $491.7 million, a 23.5% YoY increase.
• FIRDAPSE® full year 2024 product revenue, net was $306.0 million, an 18.4% YoY increase.
• AGAMREE® 2024 product revenue, net was $46.0 million, reflecting the strong commercial launch of the product.
• FYCOMPA® full year product revenue, net was $137.3 million, despite differences in variable consideration (gross-to-net) in 2024 compared to the 2023 period, during which product revenue, net for FYCOMPA was booked under EISAI's more favorable cost arrangements with distributors and government authorities.
• License and other revenue for 2024 of $2.4 million, consisted primarily of a $2.1 million milestone payment earned upon DyDo Pharma, Catalyst's sub-licensee for FIRDAPSE in Japan, receiving product approval to commercialize the product for the treatment of Lambert-Eaton myasthenic syndrome (“LEMS”) patients in Japan.
  

Fourth Quarter 2024 Financial Highlights:
Fourth-quarter 2024 financial performance was driven by ongoing organic product growth and the accelerating market uptake of AGAMREE.

• Fourth quarter 2024 total revenues were $141.8 million, a 28.3% YoY increase.
• FIRDAPSE Q4 2024 product revenue, net was $82.5 million, an 18.3% YoY increase.
• AGAMREE Q4 2024 product revenue, net was $21.1 million.
• FYCOMPA Q4 2024 product revenue, net was $38.2 million.

2024 Commercial and Regulatory Highlights:

• Successfully launched AGAMREE (vamorolone) oral suspension in the U.S. on March 13, 2024, for the treatment of Duchenne muscular dystrophy in patients ages two years and older.
• Received FDA approval on May 30, 2024, of an increased maximum daily dose of FIRDAPSE to 100 mg, enhancing treatment flexibility for healthcare providers treating LEMS patients.
• Initiated the SUMMIT study in August 2024, an open-label, five-year follow-up study which seeks to further demonstrate the clinical value of AGAMREE and evaluate its use as a monotherapy and in combination with other treatment options. Also, Catalyst initiated work to support the evaluation of AGAMREE as a treatment for additional diseases.

Notable Strategic Partnerships and Agreements:

• On January 8, 2025, announced that the Company had entered into a settlement agreement with Teva Pharmaceuticals USA, Inc. and Teva Pharmaceuticals, Inc., (collectively Teva), which resolves the patent litigation brought by Catalyst and SERB in response to Teva’s Abbreviated New Drug Application seeking approval to market a generic version of FIRDAPSE prior to the expiration of the applicable patents. Pursuant to the terms of the agreement, Teva will not market its generic version of FIRDAPSE in the U.S. any earlier than February 25, 2035, absent the occurrence of other conditions. The two remaining ANDA litigations regarding FIRDAPSE continue.
• DyDo Pharma, Catalyst’s sub-licensee for FIRDAPSE in Japan, received Japanese Ministry of Health, Labour and Welfare (MHLW) approval to commercialize FIRDAPSE in Japan on September 24, 2024. The product was launched in Japan on January 21, 2025. Catalyst anticipates generating future revenues through potentially receiving additional milestone payments and sales of FIRDAPSE at a transfer price on the product supplied to DyDo Pharma, in lieu of royalties.
• On July 24, 2024, the Company entered into an exclusive sub-license agreement with KYE Pharmaceuticals (KYE) for the commercial rights to AGAMREE in Canada, in an effort to potentially increase patient access to AGAMREE.
  

2024 Industry Recognitions:

• Recognized in the Deloitte Technology Fast 500™ as one of North America's Fastest-Growing Companies.
• Ranked 5^th on Forbes' 2025 list of America's Most Successful Mid-Cap Companies.
• Recognized among BioSpace’s 2025 Best Places to Work.
  

Fourth Quarter 2024 and Full Year 2024 Financial Results
Total revenues: Total revenues for the fourth quarter of 2024 were $141.8 million, compared to $110.6 million for the fourth quarter of 2023, representing an increase of approximately 28.3% YoY. Full year 2024 total revenues were $491.7 million, compared to $398.2 million for full year 2023, representing an increase of approximately 23.5% YoY.

Product revenue, net: Product revenue, net for the fourth quarter of 2024, was $141.8 million, compared to $109.1 million for the fourth quarter of 2023, representing an increase of approximately 30.0% YoY. Full year 2024 product revenue, net was $489.3 million, compared to $396.5 million for full year 2023, representing an increase of approximately 23.4% YoY.

Research and development expenses: In the fourth quarter of 2024, research and development expenses were $3.8 million, compared to $2.0 million in the fourth quarter of 2023.  Research and development expenses for full year 2024 were $12.6 million, compared to $93.2 million for full year 2023, which included an $81.5 million IPR&D expense related to the acquisition of a North American license for AGAMREE in the third quarter of 2023.

Selling, general, and administrative expenses: Selling, general, and administrative expenses for the fourth quarter of 2024 were $44.2 million, compared to $42.0 million in the fourth quarter of 2023. Selling, general, and administrative expenses for full year 2024 were $177.7 million, compared to $133.7 million for full year 2023.

Amortization of intangible assets: Amortization of intangible assets was $9.3 million in the fourth quarter of 2024, compared to $9.1 million in the fourth quarter of 2023. Amortization of intangible assets was $37.4 million in full year 2024, compared to $32.6 million for full year 2023.

Operating income: Operating income for the fourth quarter of 2024 was $62.8 million, compared to $41.7 million in the fourth quarter of 2023, representing an increase of approximately 50.7%. Full year 2024 operating income was $195.1 million, compared to $86.8 million for full year 2023, representing an increase of approximately 124.8%.

GAAP net income: GAAP net income for the fourth quarter of 2024 was $55.9 million ($0.47 per basic and $0.44 per diluted share), compared to GAAP net income of $34.8 million ($0.33 per basic and $0.31 per diluted share) for the fourth quarter of 2023. GAAP net income for full year 2024 was $163.9 million ($1.38 per basic and $1.31 per diluted share), compared to full year 2023 GAAP net income of $71.4 million ($0.67 per basic and $0.63 per diluted share).

Non-GAAP net income: Non-GAAP net income for the fourth quarter of 2024 was $88.8 million ($ 0.74 per basic and $0.70 per diluted share), compared to non-GAAP net income of $60.1 million ($0.56 per basic and $0.53 per diluted share) for the fourth quarter of 2023. Non-GAAP net income for full year 2024 was $276.3 million ($2.33 per basic and $2.21 per diluted share), compared to full year 2023 non-GAAP net income of $141.6 million ($1.33 per basic and $1.25 per diluted share). Non-GAAP net income in all periods excludes from net income stock-based compensation, depreciation, amortization of intangible assets, and the income tax provision.

Cash and cash equivalents: Cash and cash equivalents were $517.6 million as of December 31, 2024.

More detailed financial information and analysis of our financial condition and results of operations can be found in our Annual Report on Form 10-K for fiscal year 2024, which was filed with the U.S. Securities and Exchange Commission on February 26, 2025.

2025 Outlook
For full year 2025, the Company expects total revenues to be between $545 million and $565 million, reflecting continued growth in product revenue, net from FIRDAPSE and AGAMREE.

The Company expects FIRDAPSE’s product revenue, net for fiscal 2025 to range between $355 million and $360 million. The Company anticipates an increase in Q1 2025 product revenue, net compared to Q1 2024 due to the temporary market dynamics following the Change Healthcare disruption in February 2024, which led to short-term shifts in prescription fulfillment patterns. These effects are expected to normalize in Q2 2025, with revenue trends aligning with longer-term projections for the remainder of the year.

AGAMREE’s product revenue, net for 2025 is expected to be between $100 million and $110 million, reflecting its continued market adoption and commercial momentum. As a reminder, the Company commercially launched AGAMREE on March 13, 2024.

FYCOMPA’s product revenue, net is forecasted to be between $90 million and $95 million, driven by ongoing market demand ahead of the anticipated loss of patent exclusivity at the end of May 2025, for FYCOMPA tablets, and December 2025, for FYCOMPA oral suspension, with expected entry of generic competition following each loss of exclusivity.

Cost of sales: AGAMREE royalties paid to the product licensor increase when AGAMREE product revenue, net exceeds $100 million in any calendar year. Further, the Company will be required to make a $12.5 million milestone payment to the product licensor once AGAMREE product revenue for the calendar year reaches $100 million. Further, the Company is required to pay royalties, based on net product revenue, to the product licensor for FYCOMPA following the loss of exclusivity.

Research and development expenses: Due to anticipated activities relating to the SUMMIT study and efforts seeking to begin the development of additional indications for AGAMREE, the Company anticipates research and development expenses in 2025, absent another acquisition, to be between $15.0 and $20.0 million. Further, if the Company completes an acquisition, its R&D expenses may become more significant.

Selling, general, and administrative expenses: The Company anticipates an increase in selling, general and administrative expenses in 2025 compared to 2024, primarily driven by increased headcount, including full year costs for individuals hired throughout 2024 in certain functional areas to support the growth of its business and its overall strategy as the Company focuses on expanding its product portfolio, including the separate commercial and medical field forces for FIRDAPSE and AGAMREE which is scheduled to commence at the beginning of the 2025 second quarter.

Tax rate: The Company anticipates that its effective tax rate will be relatively consistent for 2025 compared to 2024 and 2023.

Conference Call & Webcast Details
Date:	February 27, 2025
Time:	8:30 AM ET
US/Canada Dial-in Number:	(877) 407-8912
International Dial-in Number:	(201) 689-8059

About Catalyst Pharmaceuticals

Catalyst Pharmaceuticals, Inc. (Nasdaq: CPRX) is a biopharmaceutical company committed to improving the lives of patients with rare diseases. With a proven track record of bringing life-changing treatments to the market, we focus on in-licensing, commercializing, and developing innovative therapies. Guided by our deep commitment to patient care, we prioritize accessibility, ensuring patients receive the care they need through a comprehensive suite of support services designed to provide seamless access and ongoing assistance. Catalyst maintains a well-established U.S. presence while actively seeking to expand its global commercial footprint through strategic partnerships. Catalyst, headquartered in Coral Gables, Fla., was recognized on the Forbes 2025 list as one of America's Most Successful Mid-Cap Companies and on the 2024 Deloitte Technology Fast 500™ list as one of North America’s Fastest-Growing Companies.

For more information, please visit Catalyst's website at www.catalystpharma.com. 

Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. 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 Catalyst's revenue forecasts for 2025 that are included in this press release will prove to be accurate, (ii) whether Catalyst will continue to be profitable and cash flow positive in 2025 and beyond, (iii) whether Catalyst will complete any acquisitions of additional products, and the timing of any such acquisitions, (iv) the impact of the pending Paragraph IV litigation relating to FIRDAPSE if the results of these litigation matters are adverse, and (v) those factors described in Catalyst's Annual Report on Form 10-K for the 2024 fiscal year and its subsequent filings with the U.S. Securities and Exchange Commission (“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
(in thousands, except share and per share data)
	(Unaudited) For the Three Months Ended December 31,						For the Years Ended December 31,
	2024			2023			2024			2023
Product revenue, net	$	141,809		$	109,104		$	489,327		$	396,502
License and other revenue		11			1,464			2,407			1,702
Total revenues		141,820			110,568			491,734			398,204
Operating costs and expenses:
Cost of sales (a)		21,643			15,809			68,845			51,967
Research and development		3,798			1,972			12,648			93,150
Selling, general and administrative (a)		44,192			42,036			177,740			133,710
Amortization of intangible assets		9,344			9,059			37,377			32,565
Total operating costs and expenses		78,977			68,876			296,610			311,392
Operating income		62,843			41,692			195,124			86,812
Other income, net		11,338			5,015			21,139			7,699
Net income before income taxes		74,181			46,707			216,263			94,511
Income tax provision		18,245			11,863			52,374			23,101
Net income	$	55,936		$	34,844		$	163,889		$	71,410
Net income per share:
Basic	$	0.47		$	0.33		$	1.38		$	0.67
Diluted	$	0.44		$	0.31		$	1.31		$	0.63
Weighted average shares outstanding:
Basic		119,892,062			106,714,944			118,457,673			106,279,736
Diluted		126,280,116			113,755,677			124,943,603			113,753,154

(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 December 31,								For the Years Ended December 31,
	2024				2023				2024			2023
GAAP net income:	$	55,936			$	34,844			$	163,889		$	71,410
Non-GAAP adjustments:
Stock-based compensation expense		5,171				4,250				22,251			14,250
Depreciation		114				84				397			316
Amortization of intangible assets		9,344				9,059				37,377			32,565
Income tax provision		18,245				11,863				52,374			23,101
Non-GAAP net income	$	88,810			$	60,100			$	276,288		$	141,642
Non-GAAP net income per share:
Basic	$	0.74			$	0.56			$	2.33		$	1.33
Diluted	$	0.70			$	0.53			$	2.21		$	1.25
Weighted average shares outstanding:
Basic		119,892,062				106,714,944				118,457,673			106,279,736
Diluted		126,280,116				113,755,677				124,943,603			113,753,154

CATALYST PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
	December 31, 2024			December 31, 2023
Assets
Current Assets:
Cash and cash equivalents	$	517,553		$	137,636
Accounts receivable, net		65,476			53,514
Inventory		19,541			15,644
Prepaid expenses and other current assets		21,039			12,535
Total current assets		623,609			219,329
Operating lease right-of-use asset, net		2,230			2,508
Property and equipment, net		1,354			1,195
License and acquired intangibles, net		156,672			194,049
Deferred tax assets, net		45,982			36,544
Investment in equity securities		21,564			16,489
Total assets	$	851,411		$	470,114
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	16,593		$	14,795
Accrued expenses and other liabilities		104,085			61,268
Total current liabilities		120,678			76,063
Operating lease liability, net of current portion		2,786			3,188
Other non-current liabilities		315			2,982
Total liabilities		123,779			82,233
Total stockholders’ equity		727,632			387,881
Total liabilities and stockholders’ equity	$	851,411		$	470,114

Source: Catalyst Pharmaceuticals, Inc.

FAQ

What was Catalyst Pharmaceuticals (CPRX) total revenue for full year 2024?

Catalyst's total revenue for full year 2024 was $491.7 million, representing a 23.5% increase from 2023.

How much revenue did AGAMREE generate for CPRX in 2024?

AGAMREE generated $46.0 million in product revenue for Catalyst Pharmaceuticals in 2024 following its commercial launch.

What is Catalyst's revenue guidance for 2025?

Catalyst expects total revenues between $545-565 million for 2025, with FIRDAPSE at $355-360M, AGAMREE at $100-110M, and FYCOMPA at $90-95M.

When will FYCOMPA lose patent exclusivity for CPRX?

FYCOMPA tablets will lose patent exclusivity at the end of May 2025, and FYCOMPA oral suspension in December 2025.

What was the settlement agreement between CPRX and Teva regarding FIRDAPSE?

Teva agreed not to market its generic version of FIRDAPSE in the US before February 25, 2035, subject to certain conditions.