My first article posted to Seeking Alpha. Full analysis posted there. Excerpt below.
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.