Madrigal Pharmaceuticals Inc MDGL is positioned to dominate a “blockbuster market,” according to Goldman Sachs. But while the bank believes in the biotech’s longer-term prospects, it sees no near-term catalysts for Madrigal’s stock.
The Rating
Analyst Salveen Richter downgraded Madrigal to Neutral but maintained his $314 price target.
The Thesis
Richter forecasts limited upside to his fundamental discounted cash flow value and anticipates few value-driving catalysts in the near future. However, he maintains high expectations for MGL-3196.
“We continue to view MGL-3196, a once-daily oral thyroid hormone receptor (THR)-beta agonist, as a best-in-class and industry drug for NASH driven by the positive liver and cardiometabolic profile (per the Phase 2 36-week study) and corroborating KOL feedback,” Richter wrote in a note. “Specifically, based on the efficacy/safety profile seen to date with MDGL’s MGL-3196 - our KOLs suggest this would be a first choice as monotherapy.”
He identifies a “clear development path” for MGL-3196 and anticipates New Drug Applications for two indications with global peak sales of $6 billion.
Additionally, given management’s interest in business development activities to commercialize the candidate, Madrigal could eventually drive value with a merger.
“Post the highly impressive MGL-3196 Ph2 36-week liver biopsy data, MDGL is positioned as a leading next-generation NASH player with a best-in-class strategic asset in a blockbuster market where there are currently no approved therapies,” Richter wrote.
Price Action
At time of publication, shares traded down 3.5 percent at $242.05.
Related Links:
Galmed Notches Second Bullish Rating On Aramchol Opportunity
Maxim Explains Viking Therapeutics' Sympathy Move With Madrigal
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.