Leerink Partners analyst Thomas Smith has reiterated their bullish stance on MDGL stock, giving a Buy rating on July 22.
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Thomas Smith has given his Buy rating due to a combination of factors that highlight Madrigal Pharmaceuticals’ strengthened financial position and promising pipeline expansion. The company recently secured a substantial $500 million non-dilutive credit facility from Blue Owl Capital, which replaces their previous senior credit facility. This new financial arrangement includes an initial $350 million term loan and an additional $150 million available for future draws, providing the company with significant capital to support its strategic initiatives.
Moreover, the credit facility allows Madrigal Pharmaceuticals to refinance existing debt and invest in its pipeline, particularly in the MASH sector, where it aims to maintain a competitive edge. The recent Notice of Allowance from the USPTO for a patent related to Rezdiffra further solidifies the company’s market position by offering extended protection until 2044. Despite some investor concerns about potential pipeline expansion affecting near-term M&A prospects, Smith remains optimistic about the ongoing success of the Rezdiffra launch and its potential to drive growth through increased market penetration and expansion beyond the U.S.
According to TipRanks, Smith is a top 100 analyst with an average return of 36.2% and a 52.85% success rate. Smith covers the Healthcare sector, focusing on stocks such as Disc Medicine, Sagimet Biosciences, Inc. Class A, and Madrigal Pharmaceuticals.
In another report released on July 22, Citizens JMP also reiterated a Buy rating on the stock with a $470.00 price target.