Company Articles and Overviews

Madrigal Pharmaceuticals Presents Buying Opportunity

  • Recent public offering raised approximately $329 million.

  • MGL-3196 presented positive results in key 36-week trail endpoints in Phase II clinical trial in NASH, showing reduction of liver fat and resolution of NASH.

  • Recent downtrend from June's high might be on the verge of reversing.

  • Madrigal is presenting a perfect buying opportunity at a seemingly supportive level of $200.

  • Positive financial standing to support operations for several quarters.

Madrigal is a buy to me while it is under $225. This company has a drug that is posting amazing, statistically significant data while meeting all endpoints for two separate indications. In a market primed for growth with no FDA approved treatment, MGL-3196 is set to make an impact in the industry. The company is accruing interest income of was $1.2 million this past quarter compared to $0.1 million the same time last year due primarily to a higher average principal balance in the company's investment account. With the recent earnings report, the company has enough cash on hand to fund the company through a large scale, Phase III trial for the development of the NASH treatment. Due to the millions affected by NASH, the Phase III trial is likely to be expensive and require a large patient pool. I find value in the current empty marketplace for treatment of NASH and the continual validation of MGL-3196 as a successful treatment option. There is high probability of approval based on the current data sets, with Phase III trials being set to test a new treatment that has worked well for patients in the Phase II trial.

At this current discount from the highs of recent months and showing signs of consolidation around $200, Madrigal is a buying opportunity for anyone looking to expand their biotech holdings.

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Collin BeloinComment