Madrigal Pharmaceuticals (NASDAQ:MDGL) Releases Quarterly Earnings Results, Beats Expectations By $2.92 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) posted its earnings results on Tuesday. The biopharmaceutical company reported $1.83 EPS for the quarter, beating analysts’ consensus estimates of ($1.09) by $2.92, Zacks reports. Madrigal Pharmaceuticals had a negative return on equity of 27.08% and a negative net margin of 10.89%. The firm had revenue of $431.27 million for the quarter, compared to analysts’ expectations of $404.17 million. During the same period last year, the firm earned ($5.08) EPS.

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 Stock Down 0.1%

MDGL opened at $399.63 on Friday. The company has a 50-day moving average price of $486.74 and a 200 day moving average price of $497.41. Madrigal Pharmaceuticals has a twelve month low of $353.54 and a twelve month high of $615.00. The company has a quick ratio of 2.94, a current ratio of 3.05 and a debt-to-equity ratio of 0.54. The company has a market cap of $9.28 billion, a PE ratio of -66.83 and a beta of -0.98.

Insider Buying and Selling

In other news, General Counsel Shannon Kelley sold 1,077 shares of Madrigal Pharmaceuticals stock in a transaction on Friday, November 6th. The stock was sold at an average price of $400.00, for a total transaction of $430,800.00. Following the completion of the transaction, the general counsel owned 10,397 shares of the company’s stock, valued at $4,158,800. The trade was a 9.39% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bros. Advisors Lp Baker acquired 76,140 shares of the stock in a transaction that occurred on Friday, November 6th. The stock was acquired at an average cost of $384.32 per share, for a total transaction of $29,262,124.80. Following the completion of the purchase, the director owned 2,040,682 shares in the company, valued at $784,274,906.24. The trade was a 3.88% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders sold 13,324 shares of company stock valued at $7,011,982. 17.60% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on MDGL shares. Barclays reduced their price target on Madrigal Pharmaceuticals from $964.00 to $962.00 and set an “overweight” rating for the company in a report on Monday, August 3rd. Citigroup raised their price objective on Madrigal Pharmaceuticals from $725.00 to $760.00 and gave the company a “buy” rating in a report on Tuesday, November 3rd. Wolfe Research upgraded Madrigal Pharmaceuticals from a “peer perform” rating to an “outperform” rating and set a $605.00 price objective for the company in a research report on Tuesday, August 4th. HC Wainwright began coverage on Madrigal Pharmaceuticals in a research note on Wednesday. They set a “strong-buy” rating for the company. Finally, Truist Financial reiterated a “buy” rating and set a $743.00 target price (up from $709.00) on shares of Madrigal Pharmaceuticals in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $706.87.

Key Stories Impacting Madrigal Pharmaceuticals

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Multiple real-world studies presented at AASLD reported improvements in liver stiffness and cardiometabolic health markers among patients treated with Rezdiffra, supporting the drug’s real-world potential. Rezdiffra real-world data
• Positive Sentiment: Madrigal’s latest quarterly results beat estimates: EPS was $1.83 versus consensus of a $1.09 loss, and revenue of $431.3 million exceeded the $404.2 million estimate. Madrigal stock jumps after earnings beat
• Positive Sentiment: HC Wainwright reiterated a Strong-Buy rating and projected rising EPS through 2030; Canaccord Genuity also raised its price target to $633 and maintained a Buy rating. These forecasts point to optimism about future growth, though they are analyst expectations, not guarantees.
• Neutral Sentiment: General Counsel Shannon Kelley sold 1,077 shares for about $430,800 under a pre-arranged Rule 10b5-1 plan. Kelley retained 10,397 shares, which may temper concern about the sale.
• Negative Sentiment: Several law firms announced investigations into potential securities-law violations after Madrigal’s November 3 quarterly filing. These are investigations and investor solicitations—not findings of wrongdoing—but could create legal and reputational uncertainty. Securities investigation announcement

Madrigal Pharmaceuticals Company Profile

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing treatments for metabolic dysfunction-associated steatohepatitis (MASH), a serious form of fatty liver disease. The company is headquartered in Conshohocken, Pennsylvania.

Its lead product, Rezdiffra (resmetirom), is a thyroid hormone receptor-beta agonist. The U.S. Food and Drug Administration approved Rezdiffra in 2024 for use with diet and exercise in adults with noncirrhotic MASH and moderate-to-advanced liver fibrosis.

Madrigal’s work centers on advancing medicines for liver disease, with Rezdiffra serving as its first approved therapy.