- B Riley Securities has downgraded the clinical-stage biotech Madrigal Pharmaceuticals ( NASDAQ: MDGL ) to Neutral from Buy, questioning the potential of a late-stage study for the company’s NASH candidate resmetirom to generate positive results this year.
- NASH, also known as nonalcoholic steatohepatitis, is a chronic disease characterized by excessive fat accumulation in the liver that can cause chronic inflammation, leading to fibrosis (scarring), and eventually cirrhosis, liver failure, cancer, and death.
- Madrigal ( MDGL ) expects the topline data from its MAESTRO-NASH biopsy study for resmetirom in 4Q 2022, seeking to file for the FDA’s accelerated approval next year.
- B Riley analyst points to the study’s dual primary endpoints: NASH resolution and fibrosis improvement. While the former could lead to a favorable outcome, the analyst is not so convinced about the effect size on fibrosis improvement.
- The price target lowered to $75 from $131 shares stands ~52% below the current average price target for Madrigal ( MDGL ) on Wall Street.
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Madrigal cut to Neutral at B. Riley on concerns over upcoming NASH readout