Madrigal Pharmaceuticals (NASDAQ:MDGL) Posts Earnings Results, Beats Estimates By $2.92 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) released its earnings results on Tuesday. The biopharmaceutical company reported $1.83 earnings per share for the quarter, beating the consensus estimate of ($1.09) by $2.92, Zacks reports. Madrigal Pharmaceuticals had a negative net margin of 25.32% and a negative return on equity of 56.65%. The business had revenue of $431.27 million during the quarter, compared to analysts’ expectations of $404.17 million. During the same quarter last year, the company earned ($5.08) earnings per share.

Here are the key takeaways from Madrigal Pharmaceuticals’ conference call:

• REZDIFFRA sales continued to accelerate: Third-quarter net sales rose 50% year over year to $431.3 million, bringing year-to-date sales to $1.1 billion and an annualized run rate above $1.7 billion. Active patients nearly doubled year over year to more than 55,850.
• Management estimates the U.S. F2/F3 MASH market will grow by more than 30% in 2026, while diagnosis and treatment penetration remain around 10% each. The company sees substantial long-term runway, supported by REZDIFFRA’s expected patent protection through 2045.
• Madrigal expects a late-2027 readout for its 845-patient MAESTRO-NASH-OUTCOMES trial in F4C MASH, with events accruing and dropout rates tracking expectations. The company plans to initiate the larger, CSPH-enriched MAESTRO-CSPH Phase III trial in the first half of 2027, but results are not expected until the early 2030s.
• The company reported its first profitable quarter, with net income of $55.4 million and positive operating cash flow for the second consecutive quarter; cash stood at $961.8 million. Management expects to remain focused on growth and may move in and out of profitability as it funds commercial expansion, F4C trials, and pipeline programs.
• Madrigal plans to initiate three Phase II combination trials in 2027 involving resmetirom with a DGAT2 inhibitor, an oral GLP-1 agonist, and a PNPLA3-targeting siRNA. The company says its broader pipeline now includes more than 10 resmetirom combination programs.

Madrigal Pharmaceuticals Price Performance

Shares of NASDAQ:MDGL traded up $25.87 during trading on Tuesday, reaching $457.02. The stock had a trading volume of 401,852 shares, compared to its average volume of 329,834. Madrigal Pharmaceuticals has a 52 week low of $405.00 and a 52 week high of $615.00. The business’s 50-day moving average price is $496.95 and its 200 day moving average price is $499.47. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.20 and a quick ratio of 2.94. The stock has a market capitalization of $10.56 billion, a PE ratio of -35.39 and a beta of -1.04.

Insiders Place Their Bets

In other news, General Counsel Shannon T. Kelley sold 664 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.97, for a total transaction of $341,940.08. Following the transaction, the general counsel directly owned 11,474 shares in the company, valued at approximately $5,908,765.78. This represents a 5.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William Sibold sold 5,221 shares of the stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $542.39, for a total transaction of $2,831,818.19. Following the sale, the chief executive officer directly owned 197,746 shares in the company, valued at $107,255,452.94. This trade represents a 2.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 12,247 shares of company stock valued at $6,581,182 over the last ninety days. Insiders own 17.60% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on MDGL. Wolfe Research raised Madrigal Pharmaceuticals from a “peer perform” rating to an “outperform” rating and set a $605.00 target price for the company in a research report on Tuesday, August 4th. Barclays lowered their price target on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an “overweight” rating on the stock in a report on Monday, August 3rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a report on Thursday, October 15th. Canaccord Genuity Group lifted their target price on shares of Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Finally, Citigroup began coverage on shares of Madrigal Pharmaceuticals in a research note on Wednesday, September 23rd. They issued a “buy” rating and a $725.00 target price on the stock. Fifteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Madrigal Pharmaceuticals presently has an average rating of “Moderate Buy” and a consensus price target of $699.20.

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Madrigal’s lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.