Madrigal Pharmaceuticals Is Advancing Its NASH Pipeline in 2018


Oct. 19 2018, Published 12:25 p.m. ET

NASH pipeline

Madrigal Pharmaceuticals (MDGL) is currently studying the thyroid hormone receptor-β (or THR) agonist, MGL-3196, in Phase 2 trials, in nonalcoholic steatohepatitis (or NASH) and familial hypercholesterolemia (or FH)/dyslipidemia indications. The company is studying another investigational THR-β agonist, MGL-3745, in preclinical studies in NASH and syslipidemia/FH indications.

The chart above highlights MGL-3196’s demonstrated differentiating characteristics based on 36-week data from the Phase 2 trial evaluating the drug in the NASH indication.

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Future catalysts

Madrigal Pharmaceuticals (MDGL) is awaiting multiple milestones in the next 18 months that can support the company’s stock price. Madrigal Pharmaceuticals has been selected by the American Association for the Study of Liver Diseases to present data from Phase 2 trial for MGL-3196 in the NASH indication at The Liver Meeting 2018 in San Francisco. The company also plans to conduct the end-of-Phase 2 meeting with the FDA in the near future.

Madrigal Pharmaceuticals expects to initiate a Phase 3 trial for MGL-3196 in NASH indication either in the fourth quarter or the first quarter of 2019. The company has already selected a contract research organization and has developed formulations for active pharmaceutical ingredient and tablets that would be required in the Phase 3 trial.

According to Madrigal Pharmaceuticals’ investor presentation, the company plans to initiate a Phase 3 trial evaluating MGL-3196 in dyslipidemia/FH indication in the first half of 2019.

Madrigal Pharmaceuticals’ valuation multiples

Madrigal Pharmaceuticals (MDGL) is currently trading at price-to-book and price-to-cash-flow ratios of 5.6x and 5.81x, respectively. The company has a current ratio of 90.4x, which implies that the company is well-funded in the near term.

In the next article, we’ll discuss Regeneron’s stock performance.


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