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Investing.com - Cantor Fitzgerald maintained its Neutral rating on Madrigal Pharmaceuticals (NASDAQ:MDGL), which has seen its stock surge over 63% in the past year and is currently trading near its 52-week high of $414.50, after hosting an intellectual property key opinion leader (KOL) to discuss Rezdiffra dosing and polymorph patents.
The firm’s analysis focused on the strength of Madrigal’s new weight-based dosing patent, which has an expiration date of February 2045 and has become a significant topic of debate among investors in recent weeks. According to InvestingPro data, the stock’s RSI indicates overbought conditions, suggesting heightened investor interest in these patent developments.
According to Cantor Fitzgerald, the discussions centered on whether this patent effectively extends Rezdiffra’s loss of exclusivity (LOE) and addresses existing intellectual property concerns that have impacted investor sentiment.
The KOL provided insights on what constitutes a strong dosing patent, noting that patents granted closer to the original disclosure of a drug tend to be stronger than those granted later, and that non-obvious dosing regimens—such as inverse dose relationships—can strengthen patent protection.
Cantor Fitzgerald also engaged directly with Madrigal management to gain their perspective on the patent situation, acknowledging the complexity of the topic and offering investors access to the call replay for more detailed information.
In other recent news, Madrigal Pharmaceuticals has received European Commission approval for its MASH treatment, Rezdiffra, marking it as the first approved medication for this liver condition in the European Union. This approval covers all 27 EU countries, plus Iceland, Liechtenstein, and Norway, and does not require a liver biopsy for treatment. Following this significant development, Citizens JMP has raised its price target for Madrigal Pharmaceuticals to $485, maintaining a Market Outperform rating. The company plans to launch Rezdiffra in Germany next quarter, aiming to reach approximately 370,000 patients diagnosed with F2/F3 MASH. Additionally, Goldman Sachs has reiterated its Buy rating with a $567 price target, despite the competitive market dynamics introduced by Novo Nordisk (NYSE:NVO)’s Wegovy, which also received approval for NASH treatment. Piper Sandler continues to support Madrigal with an Overweight rating and a $400 price target, expressing confidence in the company’s launch strategy and projections for 2025. These developments highlight Madrigal Pharmaceuticals’ strategic positioning in the European market for liver disease treatments.
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