LLY - Madrigal Pharmaceuticals: Perceived Threat From Eli Lilly Is Overblown
2024-02-10 04:43:54 ET
Summary
- On Tuesday, Feb 6, when Eli Lilly announced their Q4 2023 report, the stocks of NASH (nonalcoholic steatohepatitis) drug developers, including Madrigal Pharmaceuticals, all came under selling pressure.
- It seems that the reason for the sell-off was that Eli Lilly's Tirzepatide (their drug for Type 2 diabetics and weight loss) reported positive p2 data in NASH.
- LLY's p2 NASH trial data was well-received. However, I'm unsure how positive the data are and the threat to MDGL's Resmetirom's NASH market opportunity and the 2-day sell-off seems overblown.
- In this article, I take a look and discuss my thoughts.
On Tuesday Feb 6, when Eli Lilly (LLY) announced their Q4 2023 report, the stocks of NASH (nonalcoholic steatohepatitis) drug developers, e.g. Madrigal Pharmaceuticals (MDGL), Viking Therapeutics (VKTX), Akero Therapeutics (AKRO), Sagimet Biosciences (SGMT) etc., all come under selling pressure.
The reason for the stock market sell-off appears to be the perception that LLY's Tirzepatide (their obesity drug)'s positive[?] p2 NASH data is a material threat to the NASH potential of MDGL's Resmetirom....
Madrigal Pharmaceuticals: Perceived Threat From Eli Lilly Is Overblown