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Madrigal Pharmaceuticals Inc (MDGL)
NASDAQ:MDGL
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Madrigal Pharmaceuticals
(NASDAQ:MDGL)
56Neutral
Positive Factors
Commercial Launch
Rezdiffra's launch is gaining momentum, with strong patient demand and favorable physician prescribing trends.
Market Position
Rezdiffra is expected to leverage a significant first-mover advantage with EASL guidelines recommending it as a first-line treatment for non-cirrhotic MASH.
Sales Performance
Product sales of Rezdiffra beat both our expectations and Street consensus for the quarter, coming in at $137.3M, representing 33% sequential growth.
Negative Factors
Market Challenges
Several looming headwinds cloud the growth picture.
Prescription Trends
Uncertainties remain over reauthorizations, impact of GLP-1s on uptake/pricing, decline in the initial bolus of diagnosed patients, lingering skepticism among prescribers, and launch of the FGF21s.
Product Role
While the liver-stiffness data is encouraging, caution is advised on Rezdiffra’s role in cirrhotic patients.
Madrigal Pharmaceuticals (MDGL) vs. S&P 500 (SPY)
Market Cap
$7.00B
Dividend YieldN/A
Average Volume (3M)351.68K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue GrowthN/A
EPS Growth-10.89%
CountryUS
Employees528
SectorHealthcare
Sector Strength57
IndustryBiotechnology
Share Statistics
EPS (TTM)-22.11
Shares Outstanding22,203,281
10 Day Avg. Volume420,658
30 Day Avg. Volume351,675
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.85
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit34.24
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$424.21Price Target Upside34.46% 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 demonstrates substantial revenue growth due to the launch of Rezdiffra, yet remains unprofitable with negative EBIT and net income margins. The balance sheet indicates low leverage, but ongoing cash burn from R&D could challenge financial stability without careful management.Income Statement
Madrigal Pharmaceuticals is experiencing significant revenue growth, as evidenced by the jump from zero revenue in prior years to $317 million in TTM. However, the company is not yet profitable, with negative EBIT and net income margins. This indicates high operational costs relative to revenue, which is a common challenge in the biotechnology industry during the R&D phase.45
Neutral
Balance Sheet
The company's balance sheet shows a strong equity position with a low debt-to-equity ratio, highlighting financial stability. The equity ratio is healthy, reflecting a solid asset base funded by stockholders' equity. However, continuous losses can erode this stability over time.55
Neutral
Cash Flow
Cash flow analysis indicates negative free cash flow, which is typical for biotech firms focusing on research and development. The operating cash flow remains negative, suggesting ongoing cash burn. While financing activities have been a source of cash, reliance on external funding can be a concern if not managed properly.50
Neutral
| 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 |
| 119.57M | 117.19M | 49.89M | 797.00K | 786.00K | Net Debt |
| 19.55M | 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
315.48
Price Trends
326.63
Negative
322.70
Negative
291.50
Positive
Market Momentum
0.17
Negative
46.80
Neutral
63.75
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 315.48 is below the 20-day moving average (MA) of 316.07, below the 50-day MA of 326.63, and above the 200-day MA of 291.50, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 63.75 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.68B | 59.01 | 23.55% | ― | 39.94% | 32.10% | |
75 Outperform | $7.56B | 17.83 | 198.42% | ― | 22.44% | 63.47% | |
57 Neutral | $7.32B | ― | 35.68% | ― | -41.71% | -9.37% | |
56 Neutral | $7.00B | ― | -50.16% | ― | ― | -10.89% | |
52 Neutral | $7.57B | ― | -29.33% | ― | -100.00% | 5.49% | |
52 Neutral | $5.35B | 3.96 | -42.60% | 2.86% | 17.58% | 1.27% | |
51 Neutral | $8.19B | 1.93 | -7.10% | ― | -20.84% | -102.48% |
* Healthcare Sector Average
Performance Comparison
MDGL
Madrigal Pharmaceuticals
315.48
79.91
33.92%
CORT
Corcept Therapeutics
72.77
48.80
203.59%
HALO
Halozyme
61.19
20.33
49.76%
BBIO
BridgeBio Pharma
38.57
10.48
37.31%
RVMD
Revolution Medicines
40.72
1.67
4.28%
ROIV
Roivant Sciences
11.48
-0.12
-1.03%
Madrigal Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -5.52%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted the successful launch and significant growth of Rezdiffra, with strong financial performance and upcoming regulatory milestones in Europe. However, there are challenges with increased operational expenses and uncertainties in the European market strategy.Q1-2025 Updates
Positive Updates
Successful US Launch of Rezdiffra
Achieved over 80% commercial payer coverage and treated more than 17,000 patients, generating $317 million in net sales in the first 12 months.
Strong Q1 2025 Financial Performance
Net sales for Q1 2025 were $137 million, up 33% quarter-over-quarter, despite typical Q1 headwinds.
Significant Growth in Patient Adoption
Ended Q1 2025 with more than 17,000 patients on Rezdiffra, up from 11,800 at the end of Q4 2024.
High Physician Penetration Rate
70% of the 6,000 top target prescribers have prescribed Rezdiffra, demonstrating strong healthcare provider engagement.
Compelling Two-Year F4c Data
Patients saw a mean reduction of 6.7 kilopascals in liver stiffness at two years, suggesting many patients are moving into a lower risk category.
Upcoming Regulatory Decision in Europe
On track for a mid-year regulatory decision in Europe with plans to launch in Germany in the second half of the year.
Strong Financial Position
Ended Q1 2025 with $848.1 million in cash, cash equivalents, restricted cash, and marketable securities.
Negative Updates
Increased SG&A Expenses
SG&A expenses for Q1 2025 were $167.9 million, up from $80.8 million in Q1 2024, due to increases in commercial launch activities and headcount.
Expected Increase in Gross to Net Discount
Gross to net discount expected to increase throughout 2025 as payer contracting begins.
Uncertainty in European Launch Strategy
Questions remain on the European launch strategy and pricing, particularly in relation to non-invasive testing acceptance.
Company Guidance
During the first quarter of 2025, Madrigal Pharmaceuticals reported impressive performance metrics for Rezdiffra, the first FDA-approved medicine for MASH. Rezdiffra generated $137 million in net sales, representing a 33% increase quarter-over-quarter, with 17,000 patients actively on therapy, up from 11,800 at the end of 2024. The product achieved over 80% commercial payer coverage and secured a 70% prescription rate among their top 6,000 target prescribers. Rezdiffra's real-world profile demonstrates a 6.7 kPa reduction in liver stiffness in F4c patients, which is associated with a lower risk of progression to end-stage liver disease. As of Q1 2025, Madrigal maintains a strong financial position with $848.1 million in cash and equivalents, supporting continued US launch efforts and anticipated European expansion.Madrigal Pharmaceuticals Corporate Events
Executive/Board Changes
Madrigal Pharmaceuticals Announces Leadership Transition
Neutral
Apr 17, 2025
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.
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.