Madrigal Pharmaceuticals (MDGL) AI Stock Analysis

• Market Cap: $6.64B
• Dividend Yield: N/A
• Average Volume (3M): 330.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: N/A
• EPS Growth: 21.83%
• Country: US
• Employees: 528
• Sector: Healthcare
• Sector Strength: 37
• Industry: Biotechnology
• EPS (TTM): -3.32
• Shares Outstanding: 22,203,281
• 10 Day Avg. Volume: 412,439
• 30 Day Avg. Volume: 330,809
• PEG Ratio: -0.94
• Price to Book (P/B): 9.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.12
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 11.59
• Enterprise Value/Gross Profit: 22.31
• Enterprise Value/Ebitda: -3.75
• 1Y Price Target: $430.36
• Price Target Upside: 43.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 56 Neutral
• Price Target: ―

Madrigal Pharmaceuticals presents a mixed investment case. Strong revenue growth and a successful product launch boost its appeal, but profitability remains a challenge due to high operational costs. The stable balance sheet offers some reassurance, though ongoing cash burn and external financing reliance are risks. Technical indicators suggest a neutral stance with potential for growth, while the valuation reflects the high-risk nature typical of biotech firms.

Positive Factors

Financial Strategy

MDGL has secured access to a $500mn non-dilutive credit facility with Blue Owl Capital to support pipeline expansion.

Market Expansion

MDGL plans to initiate the EU launch on a country-by-country basis, beginning with Germany, suggesting EU providers may be more prepared to utilize Rezdiffra than their U.S. counterparts.

Patent Protection

The U.S. Patent and Trademark Office issued a Notice of Allowance for a patent covering Rezdiffra, which could provide protection until September 2044.

Negative Factors

M&A Prospects

Some investors interpret potential pipeline expansion as negatively impacting the likelihood of near-term M&A for MDGL.

Market Competition

There are uncertainties related to the potential approval of GLP-1s for MASH and increasing payer concessions, leading analysts to see more attractive near-term opportunities elsewhere in the space.

Patent Robustness

The new dosing patent is historically less robust and susceptible to claims of obviousness, leaving key opinion leaders interested in Madrigal’s arguments.

Madrigal Pharmaceuticals Business Overview & Revenue Model

Company Description

Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic, and liver diseases. Its lead product candidate is resmetirom, a liver-directed selective thyroid hormone receptor-ß agonist, which is in Phase III clinical trials for the treatment of non-alcoholic steatohepatitis. The company also develops MGL-3745, a backup compound to resmetirom. It has research, development, and commercialization agreement with Hoffmann-La Roche. Madrigal Pharmaceuticals, Inc. is headquartered in West Conshohocken, Pennsylvania.

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 is experiencing significant revenue growth with the introduction of Rezdiffra, but profitability remains a challenge due to negative EBIT and net income margins. The balance sheet is strong with low leverage, yet ongoing cash burn due to negative free cash flow and reliance on external financing are concerns.

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.

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.

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.

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
EBITDA	-450.13M	-379.97M	-290.92M	-242.08M	-206.20M
Net Income	-465.89M	-373.63M	-295.35M	-241.85M	-202.24M
Balance Sheet
Total Assets	1.04B	640.55M	362.57M	273.33M	287.00M
Cash, Cash Equivalents and Short-Term Investments	926.25M	634.13M	358.77M	270.35M	284.15M
Total Debt	119.57M	117.19M	49.89M	797.00K	786.00K
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: 299.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 299.17 is below the 20-day moving average (MA) of 311.33, above the 50-day MA of 293.88, and below the 200-day MA of 304.44, indicating a neutral trend. The MACD of 6.62 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 5.76 is Positive, 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
HALO	78 Outperform	$7.24B	15.59	147.06%	―	25.65%	57.10%
CORT	73 Outperform	$7.17B	58.67	21.52%	―	30.93%	11.78%
BBIO	60 Neutral	$8.67B	―	35.68%	―	-41.71%	-9.37%
MDGL	56 Neutral	$6.64B	―	-50.16%	―	―	21.83%
ROIV	54 Neutral	$7.74B	1.93	-8.56%	―	-38.94%	-104.46%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
RVMD	52 Neutral	$6.93B	―	-36.68%	―	-100.00%	5.49%

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.