Madrigal's 15-Min Chart Sees KDJ Golden Cross, Bullish Marubozu Formation

According to Madrigal's 15-minute chart, the KDJ Golden Cross and Bullish Marubozu indicators have been triggered at 08/29/2025 11:30. This indicates a shift in the momentum of the stock price towards the upside, with a potential for further increase. As buyers maintain control of the market, it is likely that the bullish momentum will continue.

Novo Nordisk's (NVO) stock has been under pressure due to the impact of compounders on its linchpin drug sales. However, the Danish drugmaker is positioning itself for growth in a new market: metabolic dysfunction-associated steatohepatitis (MASH) treatment. On August 15, 2024, the FDA approved Wegovy, a weight-loss drug, for MASH treatment, which affects about 5% of the U.S. population [1].

The market for MASH treatments is expected to nearly quadruple by 2033, reaching $8.38 billion from $2.47 billion in 2024, according to Growth Market Reports. Madrigal Pharmaceuticals (MDGL), the first company to win approval for a MASH drug, Rezdiffra, has seen strong early adoption. Rezdiffra generated $212.8 million in sales in its second year, growing 1,358% year over year [1].

Novo Nordisk estimates there are 22 million people with MASH in the U.S., and the company is targeting this market with Wegovy. The drug, which is based on semaglutide, mimics the GLP-1 hormone to suppress appetite and improve blood sugar markers. Wegovy is also approved to lower the risk of heart attack, strokes, and other cardiovascular problems [1].

Madrigal's CEO, Bill Sibold, expects the market to grow for decades and support multiple products. He notes that Rezdiffra's oral administration and liver-specific targeting may still appeal to certain subgroups, even as Wegovy's broader metabolic benefits and existing market presence could divert some patients and prescribers [1].

Leerink Partners analyst Thomas Smith expects Rezdiffra uptake to remain robust in the wake of Wegovy's approval in MASH treatment. Smith notes that drugs like Wegovy will have some room to play in the MASH market, especially where there's a metabolic driver behind the disease [1].

However, Madrigal's Sibold expects most MASH patients to eventually end up on Rezdiffra due to the high discontinuation rates of GLP-1 drugs like Wegovy. Madrigal is planning to test a pill that combines Rezdiffra with a GLP-1 drug to potentially increase its efficacy [1].

The market for MASH drugs is expected to be worth more than $15 billion by 2032, benefiting from Wegovy's approval. Smith expects Novo Nordisk to focus beyond specialists, marketing Wegovy to primary care doctors to help drive disease awareness and diagnosis [1].

Whether the new approval will give Novo Nordisk stock a lift remains to be seen. Shares have dropped more than 34% this year, but the stock jumped nearly 4% on August 18, the first trading day after Wegovy's MASH approval [1].

References:
[1] https://www.investors.com/news/technology/novo-nordisk-stock-wegovy-approval-mash-rezdiffra-madrigal-pharmaceuticals/