Investing.com — Madrigal Pharmaceuticals, Inc. Stocks (NASDAQ: NASDAQ: ) fell 11% following the release of the company’s preliminary financial results for the fourth quarter and full year 2024. Despite reporting net sales for the fourth quarter between $100 million and $103 million and $177 million to $180 million for the full year, the stock fell as the market reacted to factors beyond the immediate sales numbers.
Madrigal, a biopharmaceutical company known for its novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), shared its achievements and financials in a press release dated January 13, 2025. The company highlighted the successful launch of Rezdiffra, the first and only US FDA-approved treatment for MASH, which now has over 11,800 patients on therapy. Furthermore, Madrigal boasted a strong cash position with approximately $931 million in cash, cash equivalents, restricted cash and marketable securities at the end of 2024.
The company’s CEO, Bill Sibold, expressed optimism about the future, citing the potential for European expansion and the MAESTRO-NASH OUTCOMES trial’s ability to position Rezdiffra as a lead therapy for F2 to F4 MASH.
Despite these positive developments, Evercore ISI analyst Liisa Bayko noted that the stock’s opening drop was “likely driven by 2 factors: waning near-term M&A speculation and cash leverage,” with cash leverage rising approximately 17% in the quarter . Bayko maintains an outperform rating on Madrigal and raised its price target to $392 from $360, citing a good quarter for Rezdiffra sales and a 4% year-to-date price increase. The analyst also mentioned the expected approval and launch of Rezdiffra in the European Union, starting with Germany in the second half of 2025.
Madrigal’s press release also recapitulated significant events in 2024, including the release of Rezdiffra’s Phase 3 MAESTRO-NASH trial results and the US FDA’s approval of Rezdiffra. In addition, the company completed enrollment in the MAESTRO-NASH OUTCOMES study, which could further strengthen Rezdiffra’s position in the treatment of MASH.
While the financial results and sales figures for Rezdiffra appear strong, the stock’s move reflects investor concerns over the company’s cash loss and lack of near-term M&A activity. As the market digests the full extent of Madrigal’s update, the company’s strategic moves and operational execution will continue to be closely watched by investors and analysts.
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