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Madrigal Pharmaceuticals Trading Volume Drops 32.13% to 491st Rank Despite Strong Earnings

Market BriefFriday, May 2, 2025 7:28 pm ET

1min read

On May 2, 2025, madrigal pharmaceuticals (MDGL) experienced a significant decline in trading volume, with a total of 1.89 billion shares traded, marking a 32.13% decrease from the previous day. This placed madrigal at the 491st position in terms of trading volume for the day. The stock price also saw a 3.73% drop, marking the third consecutive day of decline, with a total decrease of 7.43% over the past three days.

Madrigal Pharmaceuticals reported strong first-quarter 2025 earnings, with net sales of $137.3 million for its flagship drug, Rezdiffra. This milestone marks the first FDA-approved treatment for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease with significant unmet medical needs. The company highlighted its strong cash position and strategic leadership appointments, positioning itself for continued growth in the MASH treatment landscape.

Key financial metrics from the report include operating expenses of $216.6 million and a decrease in research and development expenses to $44.2 million. The company also reported an increase in selling, general, and administrative expenses due to commercial launch activities for Rezdiffra. Madrigal is optimistic about Rezdiffra’s potential as a foundational therapy for MASH, with expectations of a regulatory decision from the European Medicines Agency mid-year.

Madrigal Pharmaceuticals reported a first-quarter 2025 loss of $3.32 per share, which was narrower than the consensus estimate. The company delivered earnings and revenue surprises of 8.29% and 20.35%, respectively, for the quarter ended March 2025. This indicates better-than-anticipated performance, with revenue growing by 33% quarter-over-quarter. The company's strong financial performance and strategic initiatives are expected to drive continued growth and market expansion for Rezdiffra.

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