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

by · The Markets Daily

Madrigal Pharmaceuticals (NASDAQ:MDGL – Get Free Report) issued its quarterly earnings data on Tuesday. The biopharmaceutical company reported $1.83 earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.09) by $2.92, Zacks reports. Madrigal Pharmaceuticals had a negative return on equity of 56.65% and a negative net margin of 25.32%. The business had revenue of $431.27 million during the quarter, compared to analyst estimates 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 Stock Up 8.8%

Madrigal Pharmaceuticals stock traded up $37.77 during midday trading on Tuesday, reaching $468.92. The stock had a trading volume of 211,168 shares, compared to its average volume of 328,699. The stock has a market capitalization of $10.83 billion, a P/E ratio of -36.51 and a beta of -1.04. The firm’s fifty day simple moving average is $496.95 and its 200-day simple moving average is $499.47. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.94 and a current ratio of 3.20. Madrigal Pharmaceuticals has a 1-year low of $405.00 and a 1-year high of $615.00.

Insider Buying and Selling

In other news, General Counsel Shannon T. Kelley sold 664 shares of Madrigal Pharmaceuticals stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.97, for a total value of $341,940.08. Following the sale, the general counsel directly owned 11,474 shares in the company, valued at $5,908,765.78. This trade represents a 5.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO William Sibold sold 6,362 shares of the business’s stock in a transaction on Wednesday, September 9th. The stock was sold at an average price of $535.59, for a total transaction of $3,407,423.58. Following the completion of the sale, the chief executive officer directly owned 202,967 shares in the company, valued at approximately $108,707,095.53. This represents a 3.04% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. In the last ninety days, insiders have sold 12,247 shares of company stock valued at $6,581,182. Insiders own 17.60% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Citigroup initiated coverage on shares of Madrigal Pharmaceuticals in a report on Wednesday, September 23rd. They set a “buy” rating and a $725.00 target price on the stock. Canaccord Genuity Group upped their price target on shares of Madrigal Pharmaceuticals from $578.00 to $587.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. Barclays lowered their price objective on shares of Madrigal Pharmaceuticals from $964.00 to $962.00 and set an “overweight” rating for the company in a research report on Monday, August 3rd. The Goldman Sachs Group began coverage on shares of Madrigal Pharmaceuticals in a report on Thursday, September 24th. They set a “buy” rating and a $704.00 price objective on the stock. Finally, UBS Group reaffirmed a “buy” rating and issued a $735.00 price objective on shares of Madrigal Pharmaceuticals in a research report on Wednesday, October 14th. Fifteen analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $699.20.

View Our Latest Research Report on Madrigal Pharmaceuticals

About Madrigal Pharmaceuticals

(Get Free Report)

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.

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