Madrigal Pharmaceuticals (NASDAQ:MDGL) reported second-quarter earnings with Rezdiffra sales significantly exceeding expectations, according to Goldman Sachs. According to InvestingPro data, the company maintains strong financial health with a current ratio of 5.91x, indicating robust liquidity to support its growth trajectory.
The company posted Rezdiffra sales of $212.8 million, representing a 55% quarter-over-quarter increase and substantially surpassing Goldman Sachs estimates of $150.9 million and FactSet consensus of $159.4 million. Management attributed the strong performance to robust patient demand and increased prescriber penetration. With a market capitalization of $7.5 billion and impressive gross profit margins of 96.6%,
Goldman Sachs maintained its Buy rating and $567.00 price target on Madrigal, noting that while 80% of the 6,000 target physicians have prescribed Rezdiffra, none have reached peak prescribing levels. The current 23,000+ active patients represent only 7% of the 315,000 initially identified patient population. Analyst consensus remains strongly bullish, with price targets ranging from $256 to $541, reflecting the market’s confidence in Rezdiffra’s potential.
The investment bank projects Rezdiffra will exit 2025 at an annualized run rate exceeding $1 billion despite expected competition from semaglutide in NASH treatment. European approval is expected imminently, with a German launch to follow.
Goldman Sachs anticipates a potential share re-rating as investors recognize both near-term and long-term opportunities for Rezdiffra as a cornerstone NASH therapy, supported by possible expansion to F4 cirrhotic NASH patients and new intellectual property extending exclusivity to February 2045.
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