Madrigal Pharmaceuticals (MDGL) Plunges 2.12% Amid Phase 3 Trial Anticipation

Madrigal Pharmaceuticals (MDGL) shares fell 2.12% today, marking the third consecutive day of decline, with a total drop of 8.61% over the past three days. The stock price hit its lowest level since November 2024, experiencing an intraday decline of 2.60%.

The strategy of buying MDGL shares after they reach a recent low and holding for one week resulted in a 25.24% return over the past five years, compared to a benchmark return of 50.02%, with an excess return of -24.78%. The strategy's CAGR was 9.97%, with a maximum drawdown of -54.71% and a Sharpe ratio of 0.18, indicating significant risk and moderate returns.

Madrigal Pharmaceuticals is currently under the spotlight due to the anticipated results of its Phase 3 trial for Resmetirom (MAESTRO-NAFLD-1) in treating Nonalcoholic Steatohepatitis (NASH). The trial results, expected on May 10, 2025, are crucial for the company's future prospects and could significantly impact investor sentiment and the stock price.

Additionally, Madrigal Pharmaceuticals recently announced new clinical data indicating that Rezdiffra™ (resmetirom) has shown significant improvements in multiple noninvasive tests and reduced the risk of portal hypertension. This positive clinical data has the potential to bolster investor confidence and influence the stock price positively.