Madrigal's 15-minute chart triggers KDJ Golden Cross, Bullish Marubozu signal.

Madrigal's 15-minute chart has recently displayed a bullish technical indicator, specifically a KDJ Golden Cross, accompanied by a Bullish Marubozu at 09/22/2022 12:15. This suggests that the momentum of the stock price is shifting towards a more positive trend, with a potential for further upward movement. The presence of a Bullish Marubozu indicates that buyers have taken control of the market, and it is likely that bullish momentum will continue.

Roche has made a significant strategic move into the metabolic dysfunction-associated steatohepatitis (MASH) space by acquiring 89Bio and its phase 3 drug candidate, pegozafermin. The deal, valued at up to $3.5 billion, includes a cash payment of $14.50 per share, representing a 79% increase on 89Bio's closing price yesterday Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[1].

Pegozafermin, a FGF21 analog, is in late-stage trials for MASH in moderate and severe fibrotic patients as well as those with cirrhosis of the liver. 89Bio expects a readout from the phase 3 MASH trial in the first half of 2027, which has piqued Roche's interest. The Swiss pharma is paying a contingent value right of up to $6 per share tied to certain milestones, including the first sale of pegozafermin in F4 MASH cirrhotic patients before March 31, 2030 Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[1].

The acquisition will strengthen Roche's portfolio in cardiovascular, renal, and metabolic diseases and offers opportunities for combination therapies with existing programs in its pipeline. Roche Group CEO Thomas Schinecker stated, "We are highly encouraged by pegozafermin’s potential to become a transformative treatment option in MASH, one of the most prevalent comorbidities of obesity, and to meet diverse patient needs associated with this complex disease" Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[1].

The MASH space has seen increased interest with recent developments, such as Madrigal Pharmaceuticals' approval of Rezdiffra, the first MASH drug in the U.S., and Novo Nordisk's approval of Wegovy for the fatty liver disease Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[1]. Despite Madrigal's first-mover advantage, analysts see room for multiple players and treatment options in this large market Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[1].

The FDA is also considering using a noninvasive liver measurement as a surrogate endpoint for certain MASH patients, which could accelerate drug development in this area Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[1].