MDGL

Madrigal Pharmaceuticals Inc

Healthcare


Presented:03/06/2019
Price:$127.96
Cap:$1.97B
Current Price:$216.17
Cap:$4.69B

Presented

Date03/06/2019
Price$127.96
Market Cap$1.97B
Ent Value$1.25B
P/E RatioN/A
Book Value$30.96
Div Yield0%
Shares O/S15.42M
Ave Daily Vol254,688
Short Int153.20%

Current

Price$216.17
Market Cap$4.69B
Madrigal Pharmaceuticals, Inc. engages on the development and commercialization of innovative therapeutic candidates for the treatment of cardiovascular, metabolic, and liver diseases. Its lead product, MGL-3196, is used for the treatment of non-alcoholic steatohepatitis and familial hypercholesterolemia. The company was founded by Rebecca Taub and Edward Chiang on September 2011 and is headquartered in Fort Washington, PA.

Publicly traded companies mentioned herein: Gilead Sciences Inc (GILD), Intercept Pharmaceuticals Inc (ICPT), Madrigal Pharmaceuticals Inc (MDGL), Viking Therapeutics Inc (VKTX)

Highlights

The presenter is long Madrigal Pharmaceuticals (MDGL) and thinks the share price decline seen since Nov ‘18 is unwarranted and presents a buying opportunity. That sharp gap down occurred after shares peaked at just over $300 in June 2018 following the release of positive results for MDGL’s Phase 2 clinical trial for non-alcoholic steatohepatitis (NASH). MGL-3196 has a unique mechanism of action targeting the thyroid hormone receptor-β that stays in the liver, and it is the presenter’s opinion that clinicians and “strategics” are becoming more interested in the metabolic side of the disease (vs. antifibrotics). MGL-3196 is also being studied for heterozygous familial hypercholesterolemia (HeFH), and in both instances key endpoints were met, including reductions of liver fat, LDL-cholesterol, and triglycerides. A Phase 3 trial in NASH is about to start (by end of Q1’19), and a second Phase 3 program will be run for patients with dyslipidemia (a broader population). Based on an estimated 75% probability of success and reasonable pricing if approved (e.g., ~$2k), MGL-3196 has the potential to become a $5B drug. In this scenario, the presenter thinks MDGL stock could be worth as much as $430.

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Idea Discussion

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