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Madrigal Pharmaceuticals Inc (MDGL)
NASDAQ:MDGL
Top Page
Madrigal Pharmaceuticals
(NASDAQ:MDGL)
54Neutral
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 Entry
Rezdiffra's launch is gaining momentum, with strong patient demand and favorable physician prescribing trends.
Negative Factors
Competition
Rezdiffra shows promising therapeutic benefits in NASH patients, which strengthens its market position amidst emerging competition.
Madrigal Pharmaceuticals (MDGL) vs. S&P 500 (SPY)
Market Cap
$7.41B
Dividend YieldN/A
Average Volume (3M)408.02K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue GrowthN/A
EPS Growth-10.89%
CountryUS
Employees376
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-22.11
Shares Outstanding22,080,246
10 Day Avg. Volume466,532
30 Day Avg. Volume408,021
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)41.11
Price to Cash Flow (P/CF)-17.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$413.87Price Target Upside28.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Madrigal Pharmaceuticals Business Overview & Revenue Model
Company DescriptionMadrigal 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 MoneyMadrigal 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.20
Very Negative
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.50
Neutral
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.30
Negative
| 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
Negative
323.02
Price Trends
325.37
Negative
311.01
Positive
281.31
Positive
Market Momentum
0.09
Positive
47.55
Neutral
51.60
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 323.02 is below the 20-day moving average (MA) of 334.07, below the 50-day MA of 325.37, and above the 200-day MA of 281.31, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 47.55 is Neutral, neither overbought nor oversold. The STOCH value of 51.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDGL.
Madrigal Pharmaceuticals Risk Analysis
Madrigal Pharmaceuticals disclosed 50 risk factors in its most recent earnings report. Madrigal Pharmaceuticals reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Madrigal Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $3.49B | ― | -39.22% | ― | ― | -31.37% | |
54 Neutral | $7.41B | ― | -80.35% | ― | ― | -10.89% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
45 Neutral | $405.09M | ― | -59.86% | ― | -95.31% | 18.58% | |
42 Neutral | $2.98B | ― | -17.90% | ― | ― | -10.27% | |
40 Underperform | $3.03M | ― | -37.32% | ― | ― | 73.90% | |
36 Underperform | $99.69M | ― | 48.74% | ― | ― | 4.53% |
* Healthcare Sector Average
Performance Comparison
MDGL
Madrigal Pharmaceuticals
323.02
79.45
32.62%
ALT
Altimmune
5.20
-4.82
-48.10%
GALT
Galectin Therapeutics
1.76
-0.22
-11.11%
GLMD
Galmed Pharmaceuticals
1.68
-2.51
-59.90%
VKTX
Viking Therapeutics
29.73
-35.32
-54.30%
AKRO
Akero Therapeutics
44.86
17.49
63.90%
Madrigal Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 4.37% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
Madrigal Pharmaceuticals demonstrated strong performance with the successful launch of Rezdiffra, significant prescriber engagement, and promising clinical data. Despite rising expenses and market challenges, the company's financial health and strategic positioning remain robust.Highlights
Successful Launch of Rezdiffra
Madrigal Pharmaceuticals achieved $103 million in net sales in Q4 2024, marking a 66% quarter-over-quarter growth. For the full year, the company generated $180 million in net sales, despite launching only in April.
Significant Prescriber Engagement
By the fourth quarter, approximately 60% of the top 6,000 target prescribers had prescribed Rezdiffra, up from 40% in the third quarter. Overall, 40% of the total 14,000 target prescribers had prescribed the drug by year-end.
Promising Data for Compensated MASH Cirrhosis
Two-year data from the Phase 3 MAESTRO-NAFLD trial showed a mean 6.7 kPa reduction in liver stiffness among F4c MASH patients, which is associated with a decreased risk of liver-related clinical events.
Strong Financial Position
Madrigal ended 2024 with $931.3 million in cash, cash equivalents, restricted cash, and marketable securities, positioning the company well to support ongoing and planned launches.
Lowlights
Increase in SG&A Expenses
SG&A expenses for the fourth quarter and full year of 2024 were $141.2 million and $435.1 million, respectively, reflecting a significant increase due to the rapid scale-up of U.S. commercial operations.
Expected Increase in Gross-to-Net Discount
Madrigal anticipates an increase in the gross-to-net discount in 2025, which is typical at this stage of a specialty medicine launch.
Challenges in European Market
The company anticipates unique challenges in Europe regarding pricing and reimbursement, which could impact the pace and scope of the European launch.
Company Guidance
During the Madrigal Pharmaceuticals Fourth Quarter and Full Year 2024 Earnings Conference Call, significant metrics were highlighted, showcasing the company's robust performance and strategic progress. The U.S. launch of Rezdiffra was a focal point, with net sales reaching $103 million in Q4 2024, marking a 66% quarter-over-quarter growth, and total net sales of $180 million for the year, despite launching in April. The drug achieved over 80% commercial coverage a quarter ahead of schedule, with more than 11,800 patients on therapy by year-end. The company's prescriber base saw substantial engagement, with approximately 60% of the top 6,000 target prescribers having prescribed Rezdiffra by Q4. The call also discussed the promising two-year data from the Phase 3 MAESTRO-NAFLD trial's open-label arm, which showed a mean 6.7 kPa reduction in liver stiffness among F4c patients, adding confidence to ongoing clinical trials and the potential expansion of Rezdiffra's market. Looking ahead, Madrigal is preparing for Rezdiffra's European regulatory decision and potential market expansion into compensated MASH cirrhosis, with the MAESTRO-NASH outcomes trial data expected in 2027.Madrigal Pharmaceuticals Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Madrigal Pharmaceuticals Expands Board with New Appointment
Neutral
Mar 11, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.