Richard S. Levy, a director at Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), recently sold 5,000 shares of the company's common stock. The shares were sold at a price of $350 each, totaling $1.75 million. This transaction was conducted under a Rule 10b5-1 trading plan, which was adopted by Levy in November 2023.
In addition to the sale, Levy also acquired 5,000 shares through a stock option exercise at a price of $7.36 per share. The exercise of these options, which were fully vested and exercisable, resulted in a total transaction value of $36,800. Following these transactions, Levy now holds 11,012 shares of Madrigal Pharmaceuticals directly.
In other recent news, Madrigal Pharmaceuticals has made significant strides in its research and development activities. The company has announced the completion of patient enrollment for its MAESTRO-NASH OUTCOMES trial, a significant step towards providing a potential treatment for compensated nonalcoholic steatohepatitis (NASH) cirrhosis. The trial's success is backed by positive data from a previous Phase 3 study, underlining the potential of the drug resmetirom.
Madrigal Pharmaceuticals also reported encouraging results from its drug REZDIFFRA, expected to generate revenue of $31.3 million for the third quarter of 2024. Piper Sandler maintained its Overweight rating on the company, highlighting REZDIFFRA's strong competitive profile. The company also announced the appointment of Dr. Michael R. Charlton, an expert in NASH, as Senior Vice President of Clinical Development, reinforcing its commitment to NASH research.
Additionally, Madrigal Pharmaceuticals observed improvements in health-related quality of life for patients with nonalcoholic steatohepatitis (NASH) with moderate to advanced fibrosis from its drug Rezdiffra. The drug, already approved by the FDA, demonstrated significant improvements in patient-reported outcomes. These recent developments underscore Madrigal Pharmaceuticals' ongoing efforts to improve treatment options for NASH patients.
InvestingPro Insights
The recent stock sale by Madrigal Pharmaceuticals' director Richard S. Levy comes at a time when the company's stock is showing significant momentum. According to InvestingPro data, MDGL has experienced a remarkable 147.51% price total return over the past year, with a 63.7% surge in the last month alone. This strong performance aligns with an InvestingPro Tip indicating that the stock has seen a significant return over the last week.
Despite the impressive stock performance, it's worth noting that Madrigal Pharmaceuticals is not currently profitable. An InvestingPro Tip reveals that analysts do not anticipate the company will be profitable this year. This is reflected in the company's financials, with a negative operating income of $548.05 million for the last twelve months as of Q3 2023.
However, the company's balance sheet appears robust. An InvestingPro Tip highlights that Madrigal holds more cash than debt, suggesting financial stability despite the lack of profitability. This strong cash position could be crucial for the company's ongoing research and development efforts.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Madrigal Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.