Zacks Industry Outlook Madrigal, Corcept, Catalyst Larimar and Theravance

Industry Overview - The drug industry is anticipating a shift in policy with Donald Trump's reelection, potentially leading to increased innovation and M&A activity, while efforts to repeal the Inflation Reduction Act (IRA) are likely [1][2] - Drug pricing reforms will remain a priority for the new government, with previous emphasis on controlling drug prices during Trump's last term [2] - The Zacks Medical-Drugs industry is showing promising trends in 2024, driven by increased M&A and positive pipeline developments, particularly in diabetes/obesity, inflammation, and neuroscience [3] Company Highlights - Corcept Therapeutics: The company’s sole marketed drug, Korlym, has seen strong demand, leading to an increase in annual revenue guidance. The stock has risen 67.2% this year, with 2024 earnings estimates increasing from $1.12 to $1.31 per share [15][16] - Madrigal Pharmaceuticals: The FDA approved Rezdiffra, the first therapy for noncirrhotic NASH, generating approximately $77 million in sales since its launch. The stock is up 53.4% this year, with loss estimates improving from $29.49 to $24.08 per share [17][18] - Catalyst Pharmaceuticals: The lead drug Firdapse is experiencing strong demand, and the company has diversified its portfolio with the acquisition of Fycompa. The stock has risen 38.3% this year, with stable earnings estimates at $1.92 per share [19][20] - Theravance Biopharma: The company is benefiting from increased collaboration revenues from its product Yupelri. However, the stock has declined 22.1% this year, with stable loss estimates at 45 cents per share [21][23] - Larimar Therapeutics: The company is developing nomlabofusp for Friedreich's ataxia, with a significant stock increase of 100.5% over the past year. Loss estimates have narrowed from $1.39 to $1.16 per share [24][26] Market Performance - The Zacks Medical-Drugs industry has underperformed the S&P 500 and the broader Medical sector, with a year-to-date decline of 3.4% compared to the S&P 500's increase of 24.7% [13] - The industry currently trades at a price-to-sales ratio of 2.24, significantly lower than the S&P 500's 6.19 and the Zacks Medical sector's 3.44 [14]