On Friday, Citi maintained a Buy rating on Madrigal Pharmaceuticals (NASDAQ:MDGL) and raised its price target to $389 from $382. The adjustment follows the recent approval of Madrigal's Rezdiffra (Resmetirom) by regulatory authorities. Rezdiffra is now the first approved therapy for non-cirrhotic non-alcoholic steatohepatitis (NASH), also known as metabolic dysfunction-associated steatohepatitis (MASH).
The firm's analyst noted the approval met expectations, with the market's focus on the nuances of the drug's label. The approved indication covers NASH patients with moderate-to-advanced liver fibrosis, specifically stages F2 and F3. This was consistent with the analyst's projections.
A significant highlight from the approval is that patients will not be required to undergo liver biopsies for treatment. This was seen as a major potential barrier to the drug's adoption, and its absence is likely to facilitate easier patient access to the therapy.
In response to the approval, Citi has scheduled a call with a NASH expert on March 22 to discuss the implications of Rezdiffra's label, potential launch strategies, and the competitive market landscape. Interested parties have been directed to contact a Citi sales representative for details on how to participate in the upcoming discussion.
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