Madrigal Pharmaceuticals announces executive transition

WEST CONSHOHOCKEN, PA – Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), a biopharmaceutical company with a market capitalization of $6.66 billion, disclosed a significant change in its executive team this week. Dr. Rebecca Taub, the company’s Chief Medical (TASE:BLWV) Officer and President of Research and Development, will transition to a new advisory role starting April 21, 2025. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet, suggesting stability during this transition period.

According to the 8-K filing with the Securities and Exchange Commission, Dr. Taub will serve as a Senior Scientific and Medical Advisor until the end of 2025. In her advisory capacity, Dr. Taub will provide support during the transition and offer guidance on the company’s programs targeting metabolic dysfunction-associated steatohepatitis, a liver disease. She will also maintain her position on the Board of Directors. The company’s focus on liver disease therapeutics has attracted significant analyst attention, with four analysts recently revising their earnings expectations upward.

The terms of the Letter Agreement ensure that Dr. Taub will receive her full 2025 base salary of $621,000 through December 31, 2025. Additionally, she is eligible for an annual performance-based cash bonus, with a target of 50% of her base salary, contingent on her continued employment until the end of the year.

Furthermore, Dr. Taub has entered into a Severance and Change of Control Agreement, aligning her with the company’s other executives. This agreement outlines severance benefits in the event of termination by the company without cause or if Dr. Taub resigns for good reason. The benefits include a year’s continuation of her current base salary, a bonus equal to her target annual bonus, full acceleration of equity awards, and a year’s continuation of health benefits. If a qualifying separation occurs within a year following a change of control at Madrigal, these benefits would be paid in a lump sum.

The agreement also stipulates that if Dr. Taub’s employment is not extended beyond December 31, 2025, she will be entitled to the same separation benefits.

This development comes as Madrigal Pharmaceuticals continues its focus on therapies for liver diseases, with metabolic dysfunction-associated steatohepatitis being a key area of research and development.

The information reported is based on the company’s recent SEC filing.

In other recent news, Madrigal Pharmaceuticals reported its fourth-quarter and full-year 2024 revenues, reaching $103 million and $180 million, respectively, which were at the upper end of their preannounced range. UBS reaffirmed its Buy rating on the company, with a price target of $441, based on the promising outlook for Madrigal’s metabolic-associated steatohepatitis (MASH) treatments. H.C. Wainwright also maintained a Buy rating, increasing the price target to $405, reflecting optimism about the company’s growth prospects. Additionally, JMP Securities raised its price target for Madrigal to $443, citing significant improvements in liver stiffness in patients treated with Rezdiffra, a key indicator of liver health.

TD Cowen reiterated a Buy rating with a $390 price target, following the announcement of promising findings from a two-year open-label extension study, which showed a 25% or greater reduction in liver stiffness in 51% of patients with compensated cirrhosis. Madrigal Pharmaceuticals is also anticipating a regulatory decision from the European Medicines Agency regarding Rezdiffra by mid-2025, with plans for a product launch in Germany later that year. The company recently appointed Jacqualyn Fouse, Ph.D., to its Board of Directors, succeeding Fred Craves, Ph.D., who will retire in July 2025. This leadership transition occurs as the company seeks to expand its clinical program and geographic reach. These developments highlight Madrigal’s ongoing progress in addressing the unmet needs in liver disease treatment.

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