MDGL - Why Madrigal Pharmaceuticals Stock Is Marching Higher Today
2023-05-24 13:17:07 ET
Shares of the clinical-stage drugmaker Madrigal Pharmaceuticals (NASDAQ: MDGL) were up by 6.2% on elevated volume as of 12:16 p.m. ET Wednesday. The biotech appears to be benefiting from two key tailwinds.
First, a Food and Drug Administration (FDA) panel voted overwhelmingly last Friday against approving Intercept Pharmaceuticals ' (NASDAQ: ICPT) candidate, obeticholic acid, for treating pre-cirrhotic fibrosis due to nonalcoholic steatohepatitis (NASH). So Madrigal might not face any competition in NASH treatments for a few years if the FDA ultimately approves its candidate, resmetirom , either later this year or in early 2024.
And second, Madrigal also appears to be getting a boost from an ongoing "oasis effect" among growth stocks. Investors have been piling into known winners during the second quarter of 2023, presumably due to the remote possibility of a U.S. debt default in early June, along with the very real possibility of a global economic downturn later this year. Madrigal's stock is definitely a proven winner, with the shares up by an astonishing 350% over the prior 12 months.
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Why Madrigal Pharmaceuticals Stock Is Marching Higher Today