Madrigal Secures Exclusive License from Pfizer for Ervogastat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
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Should l Buy MDGL?
Source: Newsfilter
Madrigal Pharmaceuticals' stock has hit a 20-day low, dropping 3.25% amid broader market declines.
The company has secured an exclusive global license from Pfizer for ervogastat, a clinical-stage oral DGAT-2 inhibitor, with an upfront payment of $50 million. This agreement strengthens Madrigal's position in MASH therapies and follows promising results from a prior Phase 2 study where 72% of patients achieved at least a 30% reduction in liver fat. Despite this positive development, the stock's decline reflects ongoing market concerns, particularly after a recent downgrade by Wolfe Research, which has overshadowed the potential benefits of the new licensing agreement.
The implications of this licensing deal could be significant for Madrigal, as it enhances their treatment portfolio for MASH. However, the market's reaction indicates a cautious sentiment, suggesting that investors are weighing the potential of this new partnership against the backdrop of recent downgrades and overall market performance.
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Analyst Views on MDGL
Wall Street analysts forecast MDGL stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 425.850
Low
527.00
Averages
636.22
High
900.00
Current: 425.850
Low
527.00
Averages
636.22
High
900.00
About MDGL
Madrigal Pharmaceuticals, Inc. is a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease with high unmet medical need. The Company’s medication, Rezdiffra (resmetirom), is a once-daily, oral, liver-directed THR-b agonist designed to target key underlying causes of MASH. Rezdiffra is the medication approved by the United States Food and Drug Administration (FDA) for the treatment of MASH with moderate to advanced fibrosis (consistent with stages F2 to F3). Rezdiffra is a prescribed medicine used along with diet and exercise to treat adults with nonalcoholic steatohepatitis (NASH) with moderate to advanced liver scarring (fibrosis), but not with cirrhosis of the liver. An ongoing Phase III outcomes trial is evaluating Rezdiffra for the treatment of compensated MASH cirrhosis (consistent with stage F4c).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Madrigal (MDGL) Q4 2025 Earnings Call Transcript
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- Significant Sales Performance: Madrigal Pharmaceuticals reported net sales of $321 million in Q4 2025, more than tripling from Q4 2024, with full-year net sales reaching $958.4 million, demonstrating strong market demand for Rezdiffra as a foundational therapy.
- Sustained Patient Growth: The number of patients on Rezdiffra exceeded 36,250 by the end of Q4 2025, up from over 29,500 in Q3, indicating the company's success in patient acquisition and market penetration.
- Increased R&D and Expenses: R&D expenses for Q4 2025 were $116.3 million, totaling $388.5 million for the year, primarily driven by upfront payments for new pipeline assets, which are expected to propel future product development and market expansion.
- Optimistic Future Outlook: CFO Dier anticipates robust net sales growth in 2026, despite an increase in gross-to-net impact into the high 30% range due to contracting, indicating the company’s strong growth potential in a competitive market.
See More
Madrigal Pharmaceuticals Reports Mixed Q4 2025 Earnings
- Mixed Financial Results: Madrigal Pharmaceuticals reported a Q4 2025 revenue of $321.1 million, reflecting over 210% year-over-year growth and beating consensus by $8.3 million, yet a loss per share of $2.57 missed analysts' expectations by $2.03, leading to an approximately 8% premarket decline in stock price.
- Rezdiffra Market Performance: The FDA-approved therapy for metabolic dysfunction-associated steatohepatitis, Rezdiffra, generated $958.4 million in 2025, with over 36,250 patients treated, indicating strong market demand and acceptance of the product.
- Significant Revenue Growth: Madrigal achieved over 400% year-over-year growth in net revenue for 2025, while net loss decreased by more than 38% to $288.2 million, demonstrating a balance between revenue growth and cost management, with potential for further financial improvement.
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See More
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- Revenue Growth: The quarter's revenue reached $321.08 million, reflecting a 210.8% year-over-year increase and exceeding market expectations by $8.34 million, suggesting significant progress in product sales that could lay the groundwork for future growth.
- Cash Position: As of December 31, 2025, Madrigal had cash, cash equivalents, restricted cash, and marketable securities totaling $988.6 million, an increase from $931.3 million in 2024, primarily due to the introduction of a new credit facility in July 2025, enhancing the company's financial flexibility.
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See More
