sutthirat sutthisumdang Wolfe Research initiated coverage of Madrigal Pharmaceuticals ( NASDAQ: MDGL ) with an outperform rating, calling the launch of its NASH drug Rezdiffra the biggest one of the year in biotech. The investment firm said it was bullish on the launch as the drug had first-mover advantage with a pharmacy strategy that “unintendedly creates economic incentives for PBMs to cover Rezdiffra broadly.” Wolfe also highlighted the drug’s “benign” prior authorization requirements, noting that Cigna and United Healthcare both see a biopsy as optional.
Wolfe said it was "less worried" about future GLP-1 competition, as the drug class has not “consistently led to fibrosis improvement, a more important endpoint to physicians.” It sees Akero ( AKRO ) as the company's “strongest upcoming competitor, but Madrigal is around four years ahead with the launch and can create a strong moat.” The firm set its price target for Madrigal at $382.
More on Madrigal Pharmaceuticals Madrigal May Not Be Able To Shrug GLP-1 Drugs For Long Madrigal Pharmaceuticals (MDGL) Q1 2024 Earnings Call Transcript Madrigal: Rezdiffra Launch Gets Underway, The Only Competition Is Off-Label Madrigal sees ‘tremendous interest’ in new NASH drug Rezdiffra Madrigal Pharmaceuticals GAAP EPS of -$7.38 misses by $1.18.
