Madrigal Pharmaceuticals price target raised to $590 from $500 at Oppenheimer

Oppenheimer analyst Jay Olson raised the firm’s price target on Madrigal Pharmaceuticals (MDGL) to $590 from $500 and keeps an Outperform rating on the shares. With Novo Nordisk (NVO) announcing plans to acquire Akero Therapeutics (AKRO), the importance of combinations moves to the forefront for MASH investors along three key dimensions, namely combination approaches to treating MASH with orthogonal and complementary mechanisms; combination of portfolios to address a broad range of MASH patients including F2-F3 and F4; and combination of corporate entities developing and commercializing MASH therapeutics to optimize capabilities and outcomes. While some investors were apparently disappointed that Madrigal was not acquired, Oppenheimer sees favorable points of read-across, including Rezdiffra already being entrenched as a foundational therapy to be considered for any oral combination MASH regimens; and Madrigal acquiring a GLP-1 as SYH2086 has all the properties required for a daily oral combo.