Citizens JMP reiterates Madrigal stock rating on strong Rezdiffra uptake

Published 22/07/2025, 09:54
Citizens JMP reiterates Madrigal stock rating on strong Rezdiffra uptake

Investing.com - Citizens JMP has reiterated its Market Outperform rating and $470.00 price target on Madrigal Pharmaceuticals (NASDAQ:MDGL), currently trading at $330.94 with a market capitalization of $7.35 billion, citing improved metrics for its MASH treatment Rezdiffra. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis.

The firm’s second-quarter 2025 physician survey showed Rezdiffra’s prescription rate increased to 46%, up from 42% in the first quarter, with approximately 60% of patients on paid medication and high persistence rates. The company maintains strong financial health with a healthy current ratio of 5.91 and an impressive gross profit margin of 96.61%.

Citizens JMP projects Madrigal could exceed consensus estimates for the second quarter, forecasting $172 million in sales compared to the $159 million consensus, which would represent 16% quarter-over-quarter growth from $137 million in the first quarter.

The research firm expects stronger sales growth throughout 2025, with its full-year estimate of $788 million surpassing the consensus of $683 million, noting that over 17,000 patients were on the drug as of the first quarter, representing just 5% of Madrigal’s targeted 315,000 F2/F3 MASH patients.

Madrigal Pharmaceuticals is expected to report its second-quarter 2025 financial results on August 6, 2025, when management will likely provide additional commentary on market dynamics for Rezdiffra. For deeper insights into MDGL’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and 12 additional ProTips in the detailed Pro Research Report.

In other recent news, Madrigal Pharmaceuticals has received a Notice of Allowance from the U.S. Patent and Trademark Office, extending patent protection for its MASH treatment, Rezdiffra, until September 30, 2044. This extension provides Madrigal with over ten additional years of market exclusivity, potentially securing long-term revenue streams by preventing generic competition. Oppenheimer has responded to this development by raising Madrigal’s stock price target to $500.00, maintaining an Outperform rating. The European Medicines Agency’s Committee for Medicinal Products for Human Use has also recommended approval of Rezdiffra for treating MASH in the European Union, with a final decision expected in August 2025. This would make Rezdiffra the first medication for MASH patients in Europe. Additionally, Madrigal plans to present a comparative analysis of Rezdiffra at an upcoming medical conference, showcasing its efficacy against other treatments. The U.S. launch of Rezdiffra has already exceeded expectations, with over 17,000 patients using the drug. Madrigal is also preparing for its European launch, with promising data presented at the European Association for the Study of the Liver (EASL) conference.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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