Madrigal Pharmaceuticals Stock Jumps On New Two-Year Data Showing Potential Benefit of Rezdiffra For Compensated Fatty Liver Cirrhosis

Madrigal Pharmaceuticals (MDGL) stock jumped on Wednesday, February 26, 2025, following the release of positive two-year results from the open-label compensated MASH cirrhosis (F4c) arm of the Phase 3 MAESTRO-NAFLD-1 trial of Rezdiffra (resmetirom). The biopharmaceutical company's shares soared 15.2% higher to $372.26 at 11:05 a.m. ET, driven by the promising data and strong fourth-quarter financial results.

The MAESTRO-NAFLD-1 trial demonstrated that patients treated with Rezdiffra achieved marked reductions in liver stiffness, a surrogate for fibrosis, measured by vibration-controlled transient elastography (VCTE). The mean liver stiffness at baseline was 25 kPa, and patients achieved a mean 6.7 kPa reduction in liver stiffness at two years, which was statistically significant compared to baseline. This represents the largest reduction in liver stiffness reported to date in an F4c MASH population. Additionally, 51% of patients achieved a ≥25% reduction in liver stiffness, which has been associated with reduced progression to end-stage liver disease.

Madrigal Pharmaceuticals' CEO Bill Sibold expressed confidence in the company's strong performance for 2025 and beyond, stating, "Looking back on 2024, I'm incredibly proud of what we accomplished. We secured FDA approval for Rezdiffra, the first medicine approved for MASH, in March; executed a first-in-disease launch with remarkable results; and are well positioned for strong performance again in 2025 and beyond."

The company reported fourth-quarter revenue of $103.3 million, all of which stemmed from sales of Rezdiffra, beating consensus Wall Street expectations for Q4 revenue of $87.7 million. Madrigal posted a net loss in Q4 of $59.4 million, or $2.71 per share, which also beat the consensus loss of $4.48 per share.

Analysts project that Rezdiffra could generate peak annual sales of close to $3.5 billion, with Madrigal's market cap hovering around $7.7 billion. The positive two-year data from the MAESTRO-NAFLD-1 trial and strong fourth-quarter financial results suggest that Madrigal Pharmaceuticals' stock may have more room to run.



In conclusion, Madrigal Pharmaceuticals' stock jumped on Wednesday, February 26, 2025, following the release of positive two-year results from the MAESTRO-NAFLD-1 trial of Rezdiffra and strong fourth-quarter financial results. The company's shares soared 15.2% higher, driven by the promising data and strong financial performance. Analysts project that Rezdiffra could generate peak annual sales of close to $3.5 billion, with Madrigal's market cap hovering around $7.7 billion. The positive data and strong financial results suggest that Madrigal Pharmaceuticals' stock may have more room to run.