Madrigal Pharmaceuticals (NASDAQ:MDGL) Announces Earnings Results

Madrigal Pharmaceuticals (NASDAQ:MDGL) announced its quarterly earnings results on Tuesday. The biopharmaceutical company reported $1.83 EPS for the quarter, topping analysts’ consensus estimates of ($1.09) by $2.92, Zacks reports. Madrigal Pharmaceuticals had a negative return on equity of 27.93% and a negative net margin of 10.89%. The business had revenue of $431.27 million for the quarter, compared to analysts’ expectations of $404.17 million. During the same period in the previous 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 Price Performance

Shares of NASDAQ:MDGL opened at $400.43 on Thursday. The business has a fifty day moving average price of $492.40 and a 200-day moving average price of $498.45. Madrigal Pharmaceuticals has a 1-year low of $353.54 and a 1-year high of $615.00. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.94 and a current ratio of 3.20.

Insiders Place Their Bets

In other news, CEO William Sibold sold 5,221 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $542.39, for a total value of $2,831,818.19. Following the completion of the sale, the chief executive officer directly owned 197,746 shares in the company, valued at $107,255,452.94. The trade was a 2.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, General Counsel Shannon Kelley sold 664 shares of the 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 owned 11,474 shares in the company, valued at approximately $5,908,765.78. This trade represents a 5.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 12,247 shares of company stock valued at $6,581,182. Corporate insiders own 17.60% of the company’s stock.

Madrigal Pharmaceuticals News Summary

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

• Positive Sentiment: Q3 results substantially beat expectations. Madrigal reported earnings of $1.83 per share, versus the consensus estimate of a $1.09 loss, and revenue of $431.3 million, ahead of the $404.2 million estimate. Rezdiffra sales growth helped drive the results, with coverage reporting sales surpassed $1 billion. Madrigal Q3 results
• Positive Sentiment: Analysts raised price targets and maintained Buy ratings. Canaccord lifted its target to $633 from $612, Truist to $743 from $709, and Citi to $760 from $725. The upgrades reflect substantial potential upside, though targets are analysts’ estimates, not guarantees. Canaccord rating Truist rating Citi rating
• Neutral Sentiment: Clinical development continues, but key data are not imminent. Madrigal expects the MAESTRO-NASH OUTCOMES readout in late 2027 and is planning a 2,000-plus-patient MAESTRO-CSPH study. These programs offer longer-term potential, but their timelines mean they are less likely to provide a near-term catalyst. Madrigal clinical plans
• Negative Sentiment: Legal investigations and profit-sustainability questions remain risks. Two law firms announced investigations into potential securities-law violations; these are allegations under investigation, not findings of wrongdoing. Separate coverage cited investor concerns about near-term profitability, which could temper the reaction to the strong quarterly beat. Kirby McInerney investigation notice Kaplan Fox investigation notice

Wall Street Analyst Weigh In

Several brokerages have weighed in on MDGL. The Goldman Sachs Group began coverage on shares of Madrigal Pharmaceuticals in a research report on Thursday, September 24th. They set a “buy” rating and a $704.00 price target for the company. UBS Group reaffirmed a “buy” rating and set a $735.00 price objective on shares of Madrigal Pharmaceuticals in a research note on Wednesday, October 14th. Wolfe Research upgraded shares of Madrigal Pharmaceuticals from a “peer perform” rating to an “outperform” rating and set a $605.00 target price for the company in a report on Tuesday, August 4th. HC Wainwright reissued a “buy” rating on shares of Madrigal Pharmaceuticals in a research note on Friday, July 31st. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a report on Thursday, October 15th. Fourteen research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Madrigal Pharmaceuticals has a consensus rating of “Moderate Buy” and an average price target of $706.87.

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.