2024-02-08 02:25:34 ET
Summary
- Eli Lilly's tirzepatide shows potential in treating MASH, challenging Madrigal Pharmaceuticals' resmetirom.
- Despite Madrigal's solid financials, Eli Lilly's advancements hint at market recalibration, adversely affecting Madrigal's valuation and future revenues.
- MDGL maintains a strong financial position with a healthy cash reserve, reducing immediate capital needs despite operational cash consumption.
- Recommend selling Madrigal's stock due to tirzepatide's competitive threat, despite its financial health and the speculative success of resmetirom.
At A Glance
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Madrigal's MASH Dilemma: Eli Lilly Enters The Fray (Rating Downgrade)