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Investing.com - Citizens JMP has raised its price target on Madrigal Pharmaceuticals (NASDAQ:MDGL) to $485 from $483 while maintaining a Market Outperform rating. The stock, currently trading near its 52-week high of $393.76, has delivered an impressive 46.45% return over the past year. According to InvestingPro data, 10 analysts have recently revised their earnings expectations upward for the upcoming period.
The increase follows the European Union’s approval of Madrigal’s Rezdiffra treatment, with the company planning to launch the drug in Germany next quarter. The EU launch will target approximately 370,000 patients diagnosed with F2/F3 MASH who are under the care of liver specialists. With a strong current ratio of 5.11 and moderate debt levels, InvestingPro analysis suggests the company is well-positioned financially to execute this launch.
Full approval in both the U.S. and EU markets depends on the success of the ongoing 54-month outcomes portion of the MAESTRO-NASH or MAESTRO-NASH OUTCOMES trials in well-compensated NASH cirrhosis. Success in these trials could potentially double Rezdiffra’s market opportunity by expanding treatment to compensated MASH cirrhosis patients.
Madrigal plans to disclose EU pricing details closer to launch, while Citizens JMP assumes an annual price of $20,000 in Europe compared to $49,000 in the U.S. market.
The EU guidelines already list Rezdiffra as a first-line therapy for MASH, which positions the treatment favorably for its European launch. Citizens JMP has increased its EU probability of success to 100% from 90% and models approximately $2 billion in peak European sales.
In other recent news, Madrigal Pharmaceuticals announced that the European Commission has granted conditional marketing authorization for Rezdiffra to treat adults with noncirrhotic metabolic dysfunction-associated steatohepatitis (MASH) with moderate to advanced liver fibrosis. This approval marks Rezdiffra as the first and only medication for MASH treatment in the European Union, with plans to launch in Germany in the fourth quarter of 2025. Madrigal Pharmaceuticals also reported second-quarter earnings, with Rezdiffra sales reaching $212.8 million, a 55% increase from the previous quarter. These sales significantly exceeded Goldman Sachs’ estimate of $150.9 million and the FactSet consensus of $159.4 million.
Goldman Sachs reiterated its Buy rating with a $567 price target for Madrigal, highlighting the competitive dynamics in the market following Novo Nordisk (NYSE:NVO)’s Wegovy approval for NASH patients. Piper Sandler expressed confidence in Rezdiffra’s launch, maintaining an Overweight rating and a $400 price target. Jefferies raised its price target for Madrigal to $502, following a new patent extension for Rezdiffra that extends protection until February 2045. These developments reflect growing confidence in Madrigal’s market position and future prospects.
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