Update shared on26 Sep 2025
Fair value Increased 3.32%Analysts raised Madrigal Pharmaceuticals’ price target to $481.85, citing strong EU approval momentum, first-mover advantage for Rezdiffra in MASH, guideline inclusion, and extended patent protection driving long-term value.
Analyst Commentary
- Bullish analysts cite Madrigal’s strong positioning to dominate the metabolic dysfunction-associated steatohepatitis (MASH) treatment landscape through its proprietary thyroid hormone receptor-beta platform.
- Multiple upward price target revisions followed the recent EU approval of Rezdiffra, reducing perceived regulatory risk and prompting lower discount rates in valuation models.
- The conditional EU approval makes Rezdiffra a first-line therapy for noncirrhotic MASH with moderate to advanced liver fibrosis, targeting an addressable market of 370,000 patients in the EU, with a key launch planned in Germany.
- The inclusion of Rezdiffra in EU guidelines as a preferred therapy is expected to drive a strong initial uptake and market penetration overseas.
- Patent protection for Rezdiffra through 2044 is viewed as a significant value driver, supporting blockbuster potential, long-term sales visibility, and a multi-billion-dollar market opportunity.
What's in the News
- The European Commission granted conditional marketing authorization for Rezdiffra (resmetirom) as the first and only approved therapy in the EU for adults with noncirrhotic MASH with moderate to advanced liver fibrosis, based on positive Phase 3 MAESTRO-NASH trial results.
- Madrigal estimates approximately 370,000 patients in Europe with MASH and moderate to advanced fibrosis are under specialist care and eligible for Rezdiffra.
- The MAESTRO-NASH trial demonstrated Rezdiffra’s efficacy in achieving both fibrosis reduction and MASH resolution primary endpoints, as well as improvements in liver stiffness, liver fat, enzymes, atherogenic lipids, and quality of life.
- Madrigal secured a $500 million senior secured credit facility, led by Blue Owl Capital, with the first $350 million disbursed and the remaining $150 million to be received by year-end 2027. The facility carries variable interest rates with a five-year maturity and prepayment options subject to customary fees.
Valuation Changes
Summary of Valuation Changes for Madrigal Pharmaceuticals
- The Consensus Analyst Price Target has risen slightly from $466.38 to $481.85.
- The Future P/E for Madrigal Pharmaceuticals has risen from 16.97x to 18.18x.
- The Net Profit Margin for Madrigal Pharmaceuticals has fallen slightly from 31.46% to 30.77%.
Disclaimer
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