Madrigal Pharmaceuticals stock price target raised by Oppenheimer on patent news

Published 16/07/2025, 20:36
Madrigal Pharmaceuticals stock price target raised by Oppenheimer on patent news

Investing.com - Oppenheimer raised its price target on Madrigal Pharmaceuticals (NASDAQ:MDGL), currently trading at $345.28, to $500.00 from $475.00 on Wednesday, while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock has shown strong momentum with analysts’ consensus targets ranging from $248 to $541.

The price target increase follows Madrigal’s announcement that the United States Patent and Trademark Office (USPTO) has issued a Notice of Allowance for its U.S. patent on resmetirom use, with claims covering the weight-threshold dosing schema outlined in the FDA label.

This new addition to Rezdiffra’s patent family is expected to provide protection from generic competition through the third quarter of 2044, as will be outlined in the FDA’s Orange Book, representing a significant extension from previous patents that provided protection until approximately 2033.

The patent extension provides Madrigal with over 10 additional years of market exclusivity for Rezdiffra, which Oppenheimer expects will strengthen the company’s valuation and support long-term growth.

Oppenheimer updated its financial model for Madrigal Pharmaceuticals based on this patent development, resulting in the $25 increase to its price target.

In other recent news, Madrigal Pharmaceuticals announced a significant milestone as the United States Patent and Trademark Office issued a Notice of Allowance for its MASH treatment, Rezdiffra. This patent provides protection through September 30, 2044, covering the FDA-approved use of Rezdiffra for adults with noncirrhotic MASH with moderate to advanced liver fibrosis. In addition, the European Medicines Agency’s Committee for Medicinal Products for Human Use recommended the approval of Rezdiffra, with a final decision expected in August 2025. The U.S. launch of Rezdiffra has exceeded expectations, with over 17,000 patients using the drug last quarter and sales surpassing consensus estimates. Madrigal is preparing for a European launch, with promising data presented at the European Association for the Study of the Liver. Citizens JMP has reiterated its Market Outperform rating for Madrigal, maintaining a price target of $470.00. The firm highlighted an upcoming conference where Madrigal will present a comparative analysis of Rezdiffra against other treatments. These developments underscore the growing market potential for Rezdiffra as the first FDA-approved treatment for MASH.

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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