A Look at Madrigal Pharmaceuticals’s Valuation Following Positive Phase 3 Rezdiffra Results for MASH Cirrhosis

Madrigal Pharmaceuticals (MDGL) is drawing interest after sharing two-year results from its Phase 3 MAESTRO-NAFLD-1 trial at a major liver disease conference. The new data highlights Rezdiffra’s impact in hard-to-treat MASH cirrhosis patients.

See our latest analysis for Madrigal Pharmaceuticals.

Momentum has picked up sharply for Madrigal Pharmaceuticals, with a 30% jump in the share price over the past month and a year-to-date gain of nearly 75%. Optimism around Rezdiffra’s pivotal trial results is fueling renewed interest. Notably, the company’s three-year total shareholder return of over 700% highlights substantial long-term outperformance. Investors should keep an eye on how future data releases shape sentiment going forward.

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With shares surging and positive trial data making headlines, the question now is whether Madrigal’s upside is already reflected in its valuation or if these clinical wins signal a fresh buying opportunity for investors seeking growth.

Most Popular Narrative: 2.8% Undervalued

Madrigal Pharmaceuticals’ last close sits just below the widely-followed narrative's fair value estimate of $563.80. As expectations adjust upward, investors are questioning what might sustain the recent rally and whether there is more to uncover about the forecast assumptions driving this price target.

The increasing global prevalence of advanced metabolic and liver diseases, driven by aging populations and lifestyle trends, is expanding the addressable market for Rezdiffra. The company’s early-stage penetration (7% of diagnosed U.S. MASH patients) leaves significant room for future patient growth and recurring revenues.

Read the complete narrative.

Want to understand what makes this narrative tick? Key financial leaps, ambitious growth projections, and margin shifts are locked in the details. There is a bold outlook behind that precise price target. Discover what is fueling analysts’ belief in a multi-year expansion.

Result: Fair Value of $563.80 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, future setbacks in Rezdiffra’s uptake or unexpected competition from new therapies could quickly undermine Madrigal’s positive valuation story.

Find out about the key risks to this Madrigal Pharmaceuticals narrative.

Build Your Own Madrigal Pharmaceuticals Narrative

If you want a different perspective or prefer hands-on analysis, you can shape your own story with the latest data in just a few minutes. Do it your way

A great starting point for your Madrigal Pharmaceuticals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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