Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) issued its quarterly earnings results on Tuesday. The biopharmaceutical company reported $1.83 earnings per share for the quarter, beating analysts’ consensus estimates of ($1.09) by $2.92, Zacks reports. Madrigal Pharmaceuticals had a negative net margin of 25.32% and a negative return on equity of 56.65%. The business had revenue of $431.27 million during the quarter, compared to analyst estimates of $404.17 million. During the same quarter last year, the business posted ($5.08) earnings per share.
Here are the key takeaways from Madrigal Pharmaceuticals’ conference call:
- REZDIFFRA sales continued to accelerate: Third-quarter net sales rose 50% year over year to $431.3 million, bringing year-to-date sales to $1.1 billion and an annualized run rate above $1.7 billion. Active patients nearly doubled year over year to more than 55,850.
- Management estimates the U.S. F2/F3 MASH market will grow by more than 30% in 2026, while diagnosis and treatment penetration remain around 10% each. The company sees substantial long-term runway, supported by REZDIFFRA’s expected patent protection through 2045.
- Madrigal expects a late-2027 readout for its 845-patient MAESTRO-NASH-OUTCOMES trial in F4C MASH, with events accruing and dropout rates tracking expectations. The company plans to initiate the larger, CSPH-enriched MAESTRO-CSPH Phase III trial in the first half of 2027, but results are not expected until the early 2030s.
- The company reported its first profitable quarter, with net income of $55.4 million and positive operating cash flow for the second consecutive quarter; cash stood at $961.8 million. Management expects to remain focused on growth and may move in and out of profitability as it funds commercial expansion, F4C trials, and pipeline programs.
- Madrigal plans to initiate three Phase II combination trials in 2027 involving resmetirom with a DGAT2 inhibitor, an oral GLP-1 agonist, and a PNPLA3-targeting siRNA. The company says its broader pipeline now includes more than 10 resmetirom combination programs.
Madrigal Pharmaceuticals Trading Up 8.8%
MDGL traded up $37.77 during mid-day trading on Tuesday, hitting $468.92. The stock had a trading volume of 211,168 shares, compared to its average volume of 328,699. The stock’s fifty day simple moving average is $496.95 and its 200-day simple moving average is $499.47. The firm has a market capitalization of $10.83 billion, a price-to-earnings ratio of -36.51 and a beta of -1.04. Madrigal Pharmaceuticals has a 1-year low of $405.00 and a 1-year high of $615.00. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.20 and a quick ratio of 2.94.
Insider Buying and Selling at Madrigal Pharmaceuticals
In other news, CEO William Sibold sold 6,362 shares of the business’s stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $535.59, for a total value of $3,407,423.58. Following the completion of the transaction, the chief executive officer owned 202,967 shares of the company’s stock, valued at $108,707,095.53. The trade was a 3.04% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Shannon Kelley sold 664 shares of the company’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $514.97, for a total transaction of $341,940.08. Following the completion of the sale, the general counsel owned 11,474 shares of the company’s stock, valued at approximately $5,908,765.78. This represents a 5.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 12,247 shares of company stock valued at $6,581,182 in the last three months. 17.60% of the stock is owned by company insiders.
Analyst Upgrades and Downgrades
A number of brokerages have commented on MDGL. Wells Fargo & Company initiated coverage on Madrigal Pharmaceuticals in a research report on Monday, July 27th. They issued an “overweight” rating and a $685.00 price objective on the stock. UBS Group reissued a “buy” rating and set a $735.00 price target on shares of Madrigal Pharmaceuticals in a research note on Wednesday, October 14th. Wolfe Research upgraded shares of Madrigal Pharmaceuticals from a “peer perform” rating to an “outperform” rating and set a $605.00 price objective on the stock in a report on Tuesday, August 4th. HC Wainwright restated a “buy” rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 31st. Finally, The Goldman Sachs Group began coverage on shares of Madrigal Pharmaceuticals in a research note on Thursday, September 24th. They issued a “buy” rating and a $704.00 price objective on the stock. Fifteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Madrigal Pharmaceuticals presently has a consensus rating of “Moderate Buy” and a consensus price target of $699.20.
View Our Latest Analysis on Madrigal Pharmaceuticals
About Madrigal Pharmaceuticals
Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.
Madrigal’s lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.
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