Madrigal Pharmaceuticals stock holds $390 target at TD Cowen

Published 26/02/2025, 22:44
Madrigal Pharmaceuticals stock holds $390 target at TD Cowen

On Wednesday, TD Cowen maintained a positive stance on Madrigal Pharmaceuticals (NASDAQ:MDGL) shares, with analyst Ritu Baral reiterating a Buy rating and a $390.00 price target. The affirmation follows the company’s announcement of fourth-quarter and full-year 2024 revenues, which reached $103 million and $180 million, respectively, hitting the upper end of their preannounced range. According to InvestingPro data, the company maintains strong financial health with a current ratio of 5.98, indicating robust liquidity. Five analysts have recently revised their earnings estimates upward for the upcoming period.

By the end of 2024, Madrigal Pharmaceuticals had over 11,800 patients undergoing treatment with Rezdiffra. In addition, the company reported significant findings from a two-year open-label extension (OLE) study of MAESTRO-NAFLD-1. The study revealed that 51% of patients with compensated cirrhosis linked to non-alcoholic steatohepatitis (NASH) achieved a 25% or greater reduction in liver stiffness, as measured by Vibration Controlled Transient Elastography (VCTE). This change, quantified as a 6.7 kPa statistically significant reduction, suggests promising implications for the ongoing F4 Outcome trial, which is set to present data in 2027. With a market capitalization of $6.75 billion and an impressive gross profit margin of 96.37%, the company demonstrates strong commercial potential. InvestingPro subscribers can access 12 additional key insights about MDGL’s financial health and market position.

Madrigal Pharmaceuticals is also anticipating an important regulatory development in Europe. The European Medicines Agency (EMA) is expected to make a decision regarding Rezdiffra by mid-2025. Following the anticipated approval, the company is preparing for a product launch in Germany in the second half of 2025.

The latest data and regulatory milestones underscore the progress Madrigal Pharmaceuticals is making in the treatment of NASH, a liver disease that lacks FDA-approved therapies. Investors and patients alike are closely monitoring the company’s advancements, as the successful development of Rezdiffra could meet a significant unmet medical need.

In other recent news, Madrigal Pharmaceuticals reported impressive fourth-quarter and full-year 2024 financial results, significantly surpassing revenue expectations. The company’s revenue for the quarter was $103.32 million, exceeding the consensus estimate of $87.7 million, and marking a substantial increase from the previous year, which saw no product sales. Earnings per share also outperformed expectations, with a reported EPS of ($2.71), better than the analyst consensus estimate of ($4.48). Citi analyst David Lebowitz responded to these results by raising Madrigal’s stock price target to $469, maintaining a Buy rating. Madrigal’s Rezdiffra, a treatment for liver-related diseases, has been a key driver of this financial success, with the company expanding its prescriber base and achieving over 80% commercial coverage by the third quarter of 2024.

Additionally, Madrigal shared promising two-year topline data from the Phase 3 MAESTRO-NAFLD-1 trial, highlighting improvements in liver stiffness among patients with compensated cirrhosis. The company also reaffirmed its commitment to focusing on metabolic-associated steatohepatitis (MASH) and plans to expand its product pipeline. Looking forward, Madrigal anticipates launching Rezdiffra in Europe in 2025, pending approval, which could mark the first approved therapy for MASH liver fibrosis in the region. These developments underscore Madrigal’s strategic positioning within the biotechnology sector, with a strong financial foundation and promising clinical data supporting its future endeavors.

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