2023-04-20 14:06:25 ET
Shares of clinical-stage biotech Madrigal Pharmaceuticals (NASDAQ: MDGL) rose by a noteworthy 20% over the first three and a half days of trading this week, according to data provided by S&P Global Market Intelligence . The biotech's stock took flight for two reasons:
Madrigal is preparing to submit a regulatory filing for resmetirom to the FDA. Breakthrough Therapy status ought to shorten the agency's review process, putting the drug on track to hit the market by the end of the year (assuming it gets an OK from the FDA). An approval in NASH should make Madrigal a top buyout candidate. This indication, after all, is easily one of the most valuable untapped drug markets in the world right now.
Is Madrigal stock still a buy after this latest uptick? I think so. Even with a market cap of $5.2 billion, Madrigal is arguably significantly undervalued in light of resmetirom's immense commercial potential .
For further details see:
Why Madrigal Pharmaceuticals Stock Gained 20% This Week