Madrigal Pharmaceuticals Reports Second-Quarter 2024 Financial Results and Provides Corporate Updates

Core Insights - Madrigal Pharmaceuticals reported second-quarter 2024 net sales of $14.6 million from the launch of Rezdiffra, marking the first product sales recognized by the company [1][5] - Rezdiffra is now covered for over 50% of commercial lives in the U.S., with less than 5% of those requiring biopsy for diagnosis, indicating strong market acceptance [1][3] - The company plans to commercialize Rezdiffra in Europe following an expected EMA decision in mid-2025, aiming to expand its leadership in the NASH market [1][3] Financial Performance - Total revenues for Q2 2024 were $14.6 million, with a cost of sales of $0.6 million, leading to a significant increase in operating expenses to $177.2 million compared to $86.5 million in the prior year [5] - Research and development expenses were $71.1 million, while selling, general, and administrative expenses surged to $105.4 million due to prelaunch and launch activities for Rezdiffra [5] - As of June 30, 2024, the company reported cash, cash equivalents, restricted cash, and marketable securities totaling $1.1 billion, a substantial increase from $634.1 million at the end of 2023 [5][17] Market and Product Updates - Rezdiffra is positioned as the first-line therapy for patients with F2/F3 NASH/MASH according to updated expert guidelines, highlighting its efficacy in improving liver stiffness by 91% over three years [2][3] - The company is actively engaging with healthcare practices to establish patient care pathways and increase the number of prescribers for Rezdiffra [3][4] - Recent studies presented at the EASL Congress indicate that interventions like Rezdiffra can reduce the risk of progression in NASH patients, which is critical given the rising incidence of liver transplants due to NASH [4][7] Industry Context - NASH is a leading cause of liver-related mortality and is increasingly recognized as a significant healthcare burden, particularly among women in the U.S. [7][8] - Approximately 1.5 million patients in the U.S. are diagnosed with NASH, with around 525,000 having moderate to advanced liver fibrosis, representing a substantial market opportunity for Rezdiffra [9][10]