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On Thursday, Goldman Sachs reaffirmed their positive stance on Madrigal Pharmaceuticals (NASDAQ:MDGL), maintaining a Buy rating and a price target of $530.00. Currently trading at $274.41, the stock shows significant upside potential according to analyst consensus. InvestingPro data reveals the company has received a "FAIR" overall financial health score, with particularly strong momentum metrics. The endorsement follows Madrigal's announcement at an investor conference regarding their preliminary sales for Rezdiffra.
The company, currently valued at approximately $6 billion in market capitalization, reported a stronger-than-expected performance, with fourth-quarter sales ranging between $100 million to $103 million and full-year 2024 sales between $177 million to $180 million. According to InvestingPro, the company maintains strong liquidity with a current ratio of 5.98, though analysts don't expect profitability this year. These figures surpass the Goldman Sachs and FactSet consensus estimates of $93 million and $170 million for the fourth quarter, and $95 million and $172 million for the full year, respectively.
The impressive sales results are attributed to sustained patient demand, comprehensive and deep physician prescribing, and favorable coverage. By the end of 2024, over 11,800 patients were on Rezdiffra, marking a 74% quarter-over-quarter increase. Discussions with Madrigal's management highlighted the company's effective strategies in the first year of Rezdiffra's launch.
These strategies included engaging and educating physicians, targeted direct-to-consumer campaigns, and efforts to more broadly identify, screen, and diagnose patients. These initiatives have positioned Rezdiffra's early launch favorably in comparison to other top-tier specialty drugs and have secured a significant first-to-market advantage, which is crucial for the drug's outlook in 2025 and as the therapeutic landscape for NASH (non-alcoholic steatohepatitis) continues to evolve.
Looking ahead to 2025, Madrigal is actively pursuing expansion efforts. InvestingPro subscribers have access to 10+ additional exclusive insights about Madrigal's financial health and market performance, along with comprehensive research reports that provide deep-dive analysis of the company's prospects.
These include the anticipated approval and launch of Rezdiffra in Europe by mid-2025, the advancement of the Phase 3 MAESTRO-NASH Outcomes trial for Rezdiffra in F4/cirrhotic NASH, which is expected to double the current F2/F3 opportunity according to management's estimates, with data anticipated around 2027. Additionally, the company is engaging in business development activities to strengthen its pipeline in NASH and related indications.
In other recent news, Madrigal Pharmaceuticals reported strong preliminary financial performance for the fourth quarter and full year 2024, with net sales ranging from $100 million to $103 million and $177 million to $180 million, respectively. Despite these robust figures, the company's shares fell due to factors beyond immediate sales figures. Evercore ISI analyst Liisa Bayko maintained an Outperform rating on Madrigal, raising the price target to $392 from $360, citing a strong quarter for Rezdiffra sales and a 4% price increase at the year's start.
Madrigal's Rezdiffra, the first and only U.S. FDA-approved treatment for metabolic dysfunction-associated steatohepatitis (MASH), now has over 11,800 patients on therapy. The company also reported a strong cash position, with approximately $931 million in cash and equivalents at year-end 2024. It's also worth noting that the company completed enrollment for the MAESTRO-NASH OUTCOMES trial, which could further solidify Rezdiffra's position in treating MASH.
In analyst news, Oppenheimer increased the price target for Madrigal to $400, reflecting their confidence in the company's ongoing clinical studies and development programs. TD Cowen reaffirmed their price target of $390, while Piper Sandler maintained an Overweight rating on the company. Madrigal is also preparing for a potential European launch of Rezdiffra in mid-2025.
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