United not requiring prior authorization for Madrigal drug, says JMP

JMP Securities says United Healthcare (UNH) is not requiring step therapy or prior authorization for Madrigal Pharmaceuticals’ (MDGL) Rezdiffra. Rezdiffra became available on April 9 and United has updated its Pharmacy Benefit Programs Drug List to cover Rezdiffra effective May 1 without requiring step therapy or prior authorization which should ease access to the drug from one of the largest insurers, the analyst tells investors in a research note. The firm models 2024 revenue of $97M versus the consensus of $89M, as it expects demand will be high based on a recent physician survey. Some coverage determinations may not be as favorable as United’s, says JMP, which reiterates an Outperform rating on Madrigal with a $397 price target.