Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) announced its quarterly earnings results on Tuesday. The biopharmaceutical company reported $1.83 earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.09) by $2.92, Zacks reports. The firm had revenue of $431.27 million for the quarter, compared to analyst estimates of $404.17 million. Madrigal Pharmaceuticals had a negative net margin of 25.32% and a negative return on equity of 56.65%. During the same quarter in the previous year, the firm posted ($5.08) EPS.
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 Price Performance
Madrigal Pharmaceuticals stock opened at $396.32 on Wednesday. Madrigal Pharmaceuticals has a 1 year low of $387.33 and a 1 year high of $615.00. The company’s 50-day moving average is $494.64 and its two-hundred day moving average is $498.92. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.94 and a current ratio of 3.20.
Key Headlines Impacting Madrigal Pharmaceuticals
Here are the key news stories impacting Madrigal Pharmaceuticals this week:
- Positive Sentiment: Madrigal posted Q3 EPS of $1.83, versus analysts’ expectation of a $1.09 loss, and revenue of $431.27 million, above the $404.17 million consensus. The company also said Rezdiffra sales had topped $1 billion, with sales up 50%. Madrigal Swings To Q3 Profit As Rezdiffra Sales Jump 50%
- Positive Sentiment: Citigroup raised its price target to $760 from $725 and maintained a Buy rating, pointing to substantial potential upside from the recent share price. Citigroup rating information
- Neutral Sentiment: Madrigal expects a late-2027 readout from the MAESTRO-NASH OUTCOMES trial and is planning a study of more than 2,000 patients with compensated cirrhosis and portal hypertension. These programs could broaden the company’s opportunity, but their results are not near-term catalysts. Madrigal trial plans
- Negative Sentiment: Despite the earnings beat, MDGL hit a fresh 52-week low as investors focused on near-term profitability concerns. This suggests the market may be weighing the sustainability of the commercial ramp and future investment needs against Rezdiffra’s growth. MDGL stock and profitability concerns
Wall Street Analyst Weigh In
Several research analysts recently issued reports on the stock. Citigroup increased their price target on shares of Madrigal Pharmaceuticals from $725.00 to $760.00 and gave the stock a “buy” rating in a research report on Tuesday. Canaccord Genuity Group boosted their price target on shares of Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. UBS Group reissued a “buy” rating and issued a $735.00 target price on shares of Madrigal Pharmaceuticals in a report on Wednesday, October 14th. Weiss Ratings reissued a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a research note on Thursday, October 15th. Finally, Barclays decreased their target price on Madrigal Pharmaceuticals from $964.00 to $962.00 and set an “overweight” rating on the stock in a report on Monday, August 3rd. Fourteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $701.53.
Read Our Latest Report on Madrigal Pharmaceuticals
Insider Activity at Madrigal Pharmaceuticals
In other Madrigal Pharmaceuticals news, CEO William Sibold sold 6,362 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 202,967 shares of the company’s stock, valued at approximately $108,707,095.53. This trade represents a 3.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 dated Monday, August 17th. The shares were sold at an average price of $514.97, for a total value of $341,940.08. Following the completion of the sale, the general counsel owned 11,474 shares of the company’s stock, valued at $5,908,765.78. This represents a 5.47% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 12,247 shares of company stock worth $6,581,182 over the last 90 days. 17.60% of the stock is currently owned by company insiders.
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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