Madrigal stock skidded Wednesday on detailed results from a study of Eli Lilly's (LLY) weight-loss drug in patients with a serious liver disease.
The results in metabolic dysfunction-associated steatohepatitis, or MASH, could eventually help Eli Lilly to rival Madrigal Pharmaceuticals (MDGL). Madrigal gained U.S. approval in March for the first-ever treatment for MASH, formerly called nonalcoholic steatohepatitis, or NASH. In this disease, fatty tissue builds up on the liver, causing scarring known as fibrosis.
More than half of patients who received Lilly's tirzepatide had their MASH resolved with no worsening in their fibrosis. Just 13.2% of placebo recipients hit the same bar. Meanwhile, 51% to 55% of patients across three doses had at least a one-stage improvement in fibrosis — out of five stages — and their MASH symptoms remained the same. But a high 30% of placebo recipients had the same result.
"We believe the magnitude of fibrosis benefit is at the high end of expectations heading into the data readout and could lead to some pressure on NASH-focused stocks given tirzepatide's 21% to 25% delta on fibrosis improvement appears competitive across multiple therapeutic classes within the NASH treatment landscape," Leerink Partners analyst Thomas Smith said in a client note.
On today's stock market, Madrigal stock tumbled 3.4%, closing at 235.97. But Akero Therapeutics (AKRO) reversed course and closed up 8.2% at 20.79.
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