Madrigal Pharmaceuticals (NASDAQ:MDGL) Issues Earnings Results, Misses Estimates By $2.61 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) announced its quarterly earnings data on Thursday. The biopharmaceutical company reported ($2.57) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.04 by ($2.61), FiscalAI reports. Madrigal Pharmaceuticals had a negative net margin of 30.08% and a negative return on equity of 42.55%. The company had revenue of $321.08 million for the quarter, compared to analysts’ expectations of $310.36 million. During the same quarter in the previous year, the firm posted ($2.71) EPS. The firm’s quarterly revenue was up 210.8% compared to the same quarter last year.

Here are the key takeaways from Madrigal Pharmaceuticals’ conference call:

• Madrigal reported a market-leading launch for Rezdiffra with Q4 sales of $321M, ~ $958M in its first full year, and >36,250 patients on therapy as the U.S. MASH market has expanded ~50% since end-2023.
• Management has rapidly expanded the pipeline to more than 10 programs—adding an oral GLP‑1, a late‑stage DGAT2 inhibitor (ervogastat) and six preclinical siRNAs—with a Phase 1 for the oral GLP‑1 expected in Q2 and a DGAT2 combo Phase 2 planned for 2027.
• The company is pursuing indication expansion into compensated cirrhosis (F4c)—a ~245k patient opportunity—backed by 2‑year open‑label data showing 65% of CSPH patients moved to lower risk and an event‑driven outcomes readout targeted in 2027.
• Payer contracting will push gross‑to‑net into the high‑30% range in 2026 (a headwind to net sales) while R&D and SG&A remain elevated after deal upfronts, although the balance sheet holds roughly $989M in cash and marketable securities.

Madrigal Pharmaceuticals Stock Down 0.4%

MDGL opened at $435.01 on Friday. The stock has a market capitalization of $9.88 billion, a price-to-earnings ratio of -33.80, a PEG ratio of 6.21 and a beta of -1.01. The firm has a 50 day moving average price of $521.61 and a 200-day moving average price of $481.31. Madrigal Pharmaceuticals has a twelve month low of $265.00 and a twelve month high of $615.00. The company has a quick ratio of 3.26, a current ratio of 3.44 and a debt-to-equity ratio of 0.54.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on MDGL. Wolfe Research set a $579.00 price target on Madrigal Pharmaceuticals in a report on Tuesday, January 6th. The Goldman Sachs Group reissued a “buy” rating and set a $571.00 price objective on shares of Madrigal Pharmaceuticals in a research report on Wednesday, January 14th. Weiss Ratings restated a “sell (d-)” rating on shares of Madrigal Pharmaceuticals in a research note on Thursday, January 22nd. TD Cowen reiterated a “buy” rating on shares of Madrigal Pharmaceuticals in a research note on Monday, January 12th. Finally, Citigroup reiterated an “outperform” rating on shares of Madrigal Pharmaceuticals in a research note on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $669.86.

More Madrigal Pharmaceuticals News

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Rezdiffra commercial strength: Q4 net sales of roughly $321.1M (Q4) and $958.4M for full‑year 2025, more than 36,250 patients on therapy and nearly $989M in cash and marketable securities — evidence of strong revenue growth and a sizeable cash runway. Press Release
• Neutral Sentiment: Investor materials and transparency: company provided an earnings slide deck and held a conference call — useful for modeling future margins, guidance and pipeline milestones. Earnings Presentation
• Negative Sentiment: Large EPS miss and rising expenses: reported Q4 EPS of ($2.57) vs. consensus ~$0.04, driven by a wider loss as expenses surged despite revenue beating estimates — this prompted an immediate negative market reaction. Zacks Article
• Negative Sentiment: Analyst action: Bank of America cut its price target (from $570 to $529) and set a “neutral” rating, reducing near‑term upside expectations and likely contributing to selling pressure. Benzinga

Insiders Place Their Bets

In other Madrigal Pharmaceuticals news, Director Paul A. Friedman sold 24,520 shares of the business’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $522.39, for a total transaction of $12,809,002.80. Following the completion of the sale, the director directly owned 187,164 shares in the company, valued at approximately $97,772,601.96. The trade was a 11.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Shannon T. Kelley sold 692 shares of the stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $497.36, for a total value of $344,173.12. Following the transaction, the general counsel directly owned 8,481 shares in the company, valued at $4,218,110.16. The trade was a 7.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 99,537 shares of company stock worth $53,485,702 in the last 90 days. Insiders own 21.50% of the company’s stock.

Institutional Investors Weigh In On Madrigal Pharmaceuticals

Large investors have recently made changes to their positions in the company. Kemnay Advisory Services Inc. purchased a new stake in shares of Madrigal Pharmaceuticals during the 4th quarter valued at about $39,000. Quarry LP bought a new stake in Madrigal Pharmaceuticals during the third quarter valued at approximately $39,000. Johnson Financial Group Inc. bought a new stake in Madrigal Pharmaceuticals during the third quarter valued at approximately $50,000. Smartleaf Asset Management LLC increased its holdings in Madrigal Pharmaceuticals by 50.8% during the fourth quarter. Smartleaf Asset Management LLC now owns 187 shares of the biopharmaceutical company’s stock valued at $109,000 after buying an additional 63 shares during the last quarter. Finally, Kestra Investment Management LLC bought a new position in Madrigal Pharmaceuticals in the second quarter worth approximately $85,000. 98.50% of the stock is currently owned by institutional investors.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the development of innovative therapies for cardiovascular, metabolic and liver diseases. The company’s pipeline centers on novel, liver-directed agents designed to address significant unmet medical needs, with an emphasis on nonalcoholic steatohepatitis (NASH) and related metabolic disorders.

The lead product candidate, resmetirom (MGL-3196), is an orally administered, selective thyroid hormone receptor-β agonist in Phase 3 development for the treatment of NASH.