Madrigal opportunity in MASH remains after Boehringer data, says UBS

UBS keeps a Buy rating on Madrigal Pharmaceuticals (MDGL) with a $337 price target after Boehringer Ingelheim and Zealand Pharma (ZEAL) announced Phase 2 metabolic dysfunction-associated steatohepatitis results for survodutide, a GLP-1/glucagon receptor agonist. Survodutide showed 83% of treated patients achieved a statistically significant improvement in MASH versus 18% in placebo, the analyst tells investors in a research note. The firm says that while the data looks strong, it still sees Madrigal as having a timing lead to market and MASH will ultimately be a combination market. UBS also thinks more detailed safety data will be key. It remains confident in Madrigal’s resmetirom approval in MASH ahead of the FDA action date on March 14. For Akero Therapeutics (AKRO), the analyst sees upside into the Phase 2b 96-week data in March. UBS would be a buyer on the expected weakness today for Madrigal, Akero and 89bio (ETNB) ahead of key March catalysts.