Top M&A Target: Madrigal Pharmaceuticals Could Be Next After Successful NASH Data, Analyst Says
Madrigal Pharmaceuticals Inc (NASDAQ: MDGL) has announced positive topline results from the pivotal Phase 3 MAESTRO-NASH biopsy trial of resmetirom.
JMP has raised the price target from $182 to $312 and reiterates its Market Outperform rating.
Resmetirom looks approvable based on Phase 3 MAESTRO-NASH data, the analyst said.
The analyst raised POS for resmetirom to 90% in both the U.S. and EU (from 70% and 60%, respectively) with peak sales of ~$5 billion and ~$1.5 billion (compared to $3 billion and ~$600 million expected earlier).
JMP models at an annual price of $15K in the U.S. (up from $5K) to be more in line with the annual WAC for obesity drug Wegovy ($16,188) from Novo Nordisk A/S (NYSE: NVO).
The analyst also raised the European price estimate to $5K (from $3,500).
JMP writes that Madrigal has now become a top M&A target. There is no shortage of large players with NASH exposure, including Novo Nordisk, Novartis AG (NYSE: NVS), Pfizer Inc (NYSE: PFE), Eli Lilly And Co (NYSE: LLY), Merck & Co Inc (NYSE: MRK), AstraZeneca Plc (NASDAQ: AZN), Gilead Sciences Inc (NASDAQ: GILD) to name a few, that could drive up a takeout premium.
Price Action: MDGL shares are up 6.71% at $250.35 on the last check Tuesday.
Latest Ratings for MDGL
Date | Firm | Action | From | To |
|---|---|---|---|---|
Oct 2021 | Jefferies | Initiates Coverage On | Buy | |
Aug 2021 | HC Wainwright & Co. | Maintains | Buy | |
May 2021 | Canaccord Genuity | Maintains | Buy |
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