Madrigal Pharmaceuticals (MDGL) AI Stock Analysis

• Market Cap: $6.51B
• Dividend Yield: N/A
• Average Volume (3M): 329.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: N/A
• EPS Growth: -10.89%
• Country: US
• Employees: 528
• Sector: Healthcare
• Sector Strength: 66
• Industry: Biotechnology
• EPS (TTM): -22.11
• Shares Outstanding: 22,080,246
• 10 Day Avg. Volume: 380,352
• 30 Day Avg. Volume: 329,992
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 41.87
• Price to Cash Flow (P/CF): -18.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $415.00
• Price Target Upside: 40.67% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Madrigal Pharmaceuticals' stock score reflects significant challenges in financial performance and technical analysis, offset by a successful product launch and strong clinical trial results highlighted in the earnings call. The company's ongoing losses and negative cash flow pose risks, while the robust launch of Rezdiffra and solid financial position provide some upside potential. Valuation remains unattractive due to negative earnings.

Positive Factors

Financial Performance

Rezdiffra revenues for the fourth quarter and fiscal year 2024 came in at the top of the preannounced range, showing significant growth and exceeding previous estimates.

Market Expansion

Rezdiffra is expected to potentially expand its approved population to include those with cirrhosis, a high-value segment of NASH patients.

Product Launch

Rezdiffra's sales performance is tracking well against top-tier specialty drug launches, suggesting a strong market entry.

Negative Factors

Market Competition

Rezdiffra shows promising therapeutic benefits in NASH patients, which strengthens its market position amidst emerging competition.

Market Strategy

Investor focus remains on the commercial launch for Rezdiffra and its progress with payor and market building activities, as well as prescriber and patient uptake.

Regulatory Approval

MDGL confirmed that an EMA decision is expected with plans to commence a country-by-country launch beginning with Germany pending EMA approval.

Madrigal Pharmaceuticals Business Overview & Revenue Model

Company Description

Madrigal Pharmaceuticals, Inc. (MDGL) is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of cardiovascular, metabolic, and liver diseases. The company's lead product candidate, resmetirom, is being evaluated for its potential to treat non-alcoholic steatohepatitis (NASH), a progressive liver disease. Madrigal Pharmaceuticals operates predominantly in the biotechnology and pharmaceuticals sector, leveraging cutting-edge research and development to address significant unmet medical needs.

How the Company Makes Money

Madrigal Pharmaceuticals primarily makes money through the development and commercialization of its proprietary drug candidates. The company aims to generate revenue by advancing its lead compound, resmetirom, through clinical trials and obtaining regulatory approval for commercialization. Once approved, Madrigal would earn revenue through product sales, potentially entering into licensing agreements or partnerships with larger pharmaceutical companies to expand market reach and distribution. The company's financial success is also supported by strategic collaborations and partnerships that may provide upfront payments, milestone payments, and royalties. Madrigal's revenue model is highly dependent on the successful clinical development and regulatory approval of its drug candidates.

Madrigal Pharmaceuticals Financial Statement Overview

Summary

Madrigal Pharmaceuticals faces profitability challenges with consistent net losses and negative cash flows. Despite a strong balance sheet with low debt levels, the company's ability to generate positive cash flow and net income remains a concern.

Income Statement

Madrigal Pharmaceuticals has consistently reported negative net income over the past years, indicating ongoing losses. The company's gross profit margin is also negative, reflecting a lack of profitability in its operations. There is some revenue reported in the latest annual period, but significant net losses continue to overshadow this, as evidenced by the negative EBIT and EBITDA margins. The revenue growth is not applicable as previous periods had no revenue.

Balance Sheet

The balance sheet reveals a stable equity base, with stockholders' equity significantly exceeding total liabilities, contributing to a strong equity ratio. The debt-to-equity ratio is very low, indicating minimal leverage and financial risk from debt. However, the return on equity is negative due to net losses, which is a concern for potential investors.

Cash Flow

The cash flow statement shows negative operating cash flow, indicating cash outflows from operations. Although there is significant financing cash flow, likely from capital raises, free cash flow remains negative. The operating cash flow to net income ratio is not favorable, reflecting inefficiencies in cash generation from operations relative to reported losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
180.13M	0.00	0.00	0.00	0.00
	Gross Profit
173.90M	-527.00K	-467.00K	-405.00K	-471.00K
	EBIT
-497.88M	-380.50M	-293.57M	-242.48M	-206.67M
	EBITDA
-450.13M	-379.97M	-293.10M	-242.08M	-206.20M
	Net Income Common Stockholders
-465.89M	-373.63M	-299.31M	-241.08M	-197.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
926.25M	634.13M	358.77M	270.35M	284.15M
	Total Assets
1.04B	640.55M	362.57M	273.33M	287.00M
	Total Debt
983.00K	117.19M	49.89M	797.00K	786.00K
	Net Debt
-99.04M	17.28M	-281.66M	-35.47M	-53.22M
	Total Liabilities
287.86M	235.21M	165.18M	77.22M	47.02M
	Stockholders Equity
754.38M	405.33M	197.39M	196.11M	239.97M
Cash Flow		Free Cash Flow
-457.03M	-325.71M	-225.07M	-184.13M	-157.90M
	Operating Cash Flow
-455.57M	-324.23M	-224.86M	-183.92M	-157.56M
	Investing Cash Flow
-274.39M	-502.52M	206.69M	-5.05M	159.78M
	Financing Cash Flow
735.06M	595.12M	313.45M	171.24M	5.09M

Madrigal Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 295.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDGL, the sentiment is Negative. The current price of 295.02 is below the 20-day moving average (MA) of 320.98, below the 50-day MA of 329.80, and above the 200-day MA of 289.69, indicating a neutral trend. The MACD of -7.50 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDGL.

Madrigal Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKRO	60 Neutral	$3.00B	―	-39.22%	―	―	-31.37%
Sector *	50 Neutral	$5.14B	3.10	-40.94%	2.95%	17.94%	2.00%
MDGL	45 Neutral	$6.51B	―	-80.35%	―	―	-10.89%
ALT	44 Neutral	$350.41M	―	-59.86%	―	-95.31%	18.58%
VKTX	44 Neutral	$2.69B	―	-17.90%	―	―	-10.27%
GALT	32 Underperform	$82.77M	―	48.74%	―	―	-1.60%
GLMD	27 Underperform	$3.12M	―	-49.77%	―	―	71.41%

Madrigal Pharmaceuticals Corporate Events

Madrigal Pharmaceuticals Announces Leadership Transition

On April 16, 2025, Madrigal Pharmaceuticals announced that Dr. Rebecca Taub will transition from her role as Chief Medical Officer and President of Research and Development to a Senior Scientific and Medical Advisor role effective April 21, 2025. Dr. Taub will continue to support the company’s metabolic dysfunction-associated steatohepatitis programs and remain on the Board of Directors. She will receive her 2025 base salary and be eligible for a performance-based bonus. Additionally, Dr. Taub entered into a Severance and Change of Control Agreement, entitling her to severance benefits under certain conditions, including a continuation of her salary and health benefits, should her employment be terminated without cause or for good reason.

Spark’s Take on MDGL Stock

According to Spark, TipRanks’ AI Analyst, MDGL is a Neutral.

Madrigal Pharmaceuticals’ overall score reflects significant challenges in profitability and cash flow generation, offset by strong product launch and positive technical indicators. The company’s strategic progress and strong financial position are promising, but valuation concerns remain due to ongoing losses.

To see Spark’s full report on MDGL stock, click here.

Madrigal Pharmaceuticals Expands Board with New Appointment

On March 9, 2025, Fred Craves announced his resignation from Madrigal Pharmaceuticals’ Board of Directors, effective July 1, 2025, without any disagreements with the company. Subsequently, the Board expanded to include Jackie Fouse, Ph.D., an experienced biotech executive, who will serve on the Audit and Nominating and Governance Committees. This change reflects Madrigal’s commitment to leadership in the MASH sector, with plans to drive the launch of Rezdiffra, expand geographically, and advance their clinical program.