Madrigal Pharmaceuticals initiated with a Buy at Citi

Citi initiated coverage of Madrigal Pharmaceuticals with a Buy rating and $382 price target. The analyst also opened a “30-day positive catalyst watch” on the shares. Madrigal is developing resmetirom, a thyroid hormone receptor-beta agonist, that is well positioned to be the first approved therapy to address the “untapped, potentially multibillion-dollar market” for non-alcoholic steatohepatitis, the analyst tells investors in a research note. The firm sees likely approval of resmetirom on the March 14 FDA action date. While NASH has historically been a challenging space for drug development, resmetirom provides a compelling risk/benefit for patients that likely supports approval, says Citi.