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Madrigal Pharmaceuticals
(NASDAQ:MDGL)
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Rating:49Neutral
Price Target:
$485.00
▼(-5.30% Downside)
Action:Reiterated
Date:10/08/26
The score is held down primarily by weak financial quality (ongoing net losses, negative operating/FCF, and rising leverage) and bearish technicals (price below key moving averages with negative MACD). These are partially offset by a strong earnings-call setup showing robust Rezdiffra demand, expanding patient adoption, and confident 2026 growth commentary, but profitability and cash-flow inflection remain the key gating items.
Positive Factors
Rapid Rezdiffra adoption
Rezdiffra is demonstrating strong commercial traction, with rapid sales growth and a patient base that more than doubled year over year. Broad access, prescriber depth, adherence, and continued patient additions support a durable revenue expansion opportunity over the coming quarters.
Negative Factors
Persistent losses and cash burn
Despite the revenue ramp, Madrigal has not yet converted commercialization into positive operating or free cash flow. Continued cash consumption can restrict funding flexibility and may require the company to rely on its available resources until sales growth sufficiently exceeds operating and development costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Rezdiffra adoption
Rezdiffra is demonstrating strong commercial traction, with rapid sales growth and a patient base that more than doubled year over year. Broad access, prescriber depth, adherence, and continued patient additions support a durable revenue expansion opportunity over the coming quarters.
Read all positive factors
Madrigal Pharmaceuticals (MDGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.80B
Dividend YieldN/A
Average Volume (3M)275.77K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth149.04%
EPS Growth-0.28%
CountryUS
Employees915
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-12.89
Shares Outstanding23,104,126
10 Day Avg. Volume335,818
30 Day Avg. Volume275,769
Financial Highlights & Ratios
PEG Ratio1.10
Price to Book (P/B)21.68
Price to Sales (P/S)13.63
P/FCF Ratio-68.75
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue11.81
Enterprise Value/Gross Profit12.91
Enterprise Value/Ebitda-51.90
Forecast
1Y Price Target
$683.67Price Target Upside33.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)-6.02
Revenue Forecast (FY)$1.53B
Madrigal Pharmaceuticals Business Overview & Revenue Model
Company Description
Madrigal Pharmaceuticals, Inc. is a biopharmaceutical company in the clinical development phase, concentrating its efforts on discovering and commercializing innovative treatments for cardiovascular, metabolic, and liver disorders. Its most advanc...
How the Company Makes Money
Madrigal makes money primarily through sales of its prescription drug Rezdiffra in the United States. Revenue is generated when wholesalers, specialty distributors, or pharmacies purchase product (net of estimated rebates, chargebacks, returns, di...
Madrigal Pharmaceuticals Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive, driven by 71% year-over-year net sales growth, a patient base that more than doubled, progress past 50,000 patients, expanding market opportunity, encouraging real-world and clinical data, strengthened intellectual property, and a rapidly advancing pipeline. The main negatives were higher operating costs, a wider net loss, lower cash compared with year-end, negligible near-term European contribution due to reimbursement challenges, and continued uncertainty around the precise timing and event-rate dynamics of the F4-C trial. Highlights significantly outweighed the lowlights.Positive Updates
Strong Rezdiffra Net Sales Growth
Second-quarter 2026 net sales were $364.3 million, representing 71% year-over-year growth. Management said demand remains strong and that the product is tracking in line with, and in many cases exceeding, best-in-class specialty launches.
Negative Updates
Higher Cost of Sales
Second-quarter 2026 cost of sales was $40.0 million, compared with $9.1 million in the prior-year period. The increase was primarily driven by higher royalties payable to Roche and a write-down of certain work-in-process inventory.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Rezdiffra Net Sales Growth
Second-quarter 2026 net sales were $364.3 million, representing 71% year-over-year growth. Management said demand remains strong and that the product is tracking in line with, and in many cases exceeding, best-in-class specialty launches.
Read all positive updates
Company Guidance
Management expects Rezdiffra to continue to steadily add patients, with robust net sales growth for 2026, and is comfortable with the consensus quarterly growth rates for the rest of the year; growth to net discount is expected to be in the mid to high 30s for this year, the MASH market is expected to expand at a double-digit pace for the foreseeable future, full year 2026 R&D expenses are expected to be roughly the same as 2025, and full year 2026 SG&A expenses are expected to increase compared to 2025. The company expects to initiate 3 phase II trials in 2027, expects the F4-C MAESTRO Outcomes study to read out in 2027 and the F2-F3 MAESTRO-NASH study to provide data in 2028, and expects Europe’s contribution to be negligible for the year.Madrigal Pharmaceuticals Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
50
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.28B | 958.40M | 180.13M | 0.00 | 0.00 | 0.00 |
| Gross Profit | 1.17B | 902.25M | 173.90M | 0.00 | 0.00 | 0.00 |
| EBITDA | -292.07M | -264.47M | -450.13M | -360.39M | -290.92M | -241.44M |
| Net Income | -325.10M | -288.28M | -465.89M | -373.63M | -295.35M | -241.85M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.26B | 1.04B | 640.55M | 362.57M | 273.33M |
| Cash, Cash Equivalents and Short-Term Investments | 838.75M | 983.56M | 926.25M | 634.13M | 358.77M | 270.35M |
| Total Debt | 347.75M | 354.36M | 119.57M | 117.19M | 49.89M | 797.00K |
| Total Liabilities | 720.92M | 656.90M | 287.86M | 235.21M | 165.18M | 77.22M |
| Stockholders Equity | 523.72M | 602.69M | 754.38M | 405.33M | 197.39M | 196.11M |
Cash Flow | ||||||
| Free Cash Flow | -206.28M | -190.02M | -457.03M | -325.71M | -225.07M | -184.13M |
| Operating Cash Flow | -197.72M | -189.55M | -455.57M | -324.23M | -224.86M | -183.92M |
| Investing Cash Flow | 46.97M | 32.32M | -274.39M | -502.52M | 206.69M | -5.05M |
| Financing Cash Flow | 251.04M | 255.98M | 735.06M | 595.12M | 313.45M | 171.24M |
Madrigal Pharmaceuticals Technical Analysis
Negative
512.16
Price Trends
510.68
Negative
513.16
Negative
503.15
Negative
Market Momentum
-17.46
Positive
35.56
Neutral
30.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDGL, the sentiment is Negative. The current price of 512.16 is above the 20-day moving average (MA) of 482.36, above the 50-day MA of 510.68, and above the 200-day MA of 503.15, indicating a bearish trend. The MACD of -17.46 indicates Positive momentum. The RSI at 35.56 is Neutral, neither overbought nor oversold. The STOCH value of 30.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDGL.
Madrigal Pharmaceuticals Risk Analysis
Madrigal Pharmaceuticals disclosed 50 risk factors in its most recent earnings report. Madrigal Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Madrigal Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $15.95B | 19.63 | 42.49% | ― | 9.23% | 53.08% | |
68 Neutral | $14.90B | 17.57 | 190.44% | ― | 128.41% | ― | |
61 Neutral | $25.22B | -96.84 | -6.12% | ― | -67.58% | 45.61% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $10.80B | -35.53 | -56.65% | ― | 149.04% | -0.28% | |
49 Neutral | $13.24B | -18.92 | 31.67% | ― | 202.39% | 12.83% | |
46 Neutral | $7.54B | -12.79 | -110.84% | ― | -7.49% | -98.12% |
* Healthcare Sector Average
MDGL
Madrigal Pharmaceuticals
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Madrigal Pharmaceuticals Corporate Events
Business Operations and StrategyExecutive/Board Changes
Madrigal Pharmaceuticals Adds Renowned Leader to Board
Positive
Aug 12, 2026
On August 11, 2026, Madrigal Pharmaceuticals expanded its Board of Directors from eight to nine members and elected John C. Reed, M.D., Ph.D., as a Class II director, with his term running until the 2027 annual meeting of stockholders. Reed, curre...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.