Madrigal Q1 Earnings Beat, MASH Drug Sales Drive Top Line, Stock Up

Core Viewpoint - Madrigal Pharmaceuticals reported a narrower loss in Q1 2025 compared to the previous year and exceeded revenue expectations due to strong sales of its newly launched drug Rezdiffra for metabolic dysfunction-associated steatohepatitis (MASH) [1][2][3] Financial Performance - The company reported a loss of $3.32 per share, better than the Zacks Consensus Estimate of a loss of $3.62, and significantly improved from a loss of $7.38 per share in the same quarter last year [1] - Total revenues for the quarter reached $137.3 million, all from Rezdiffra sales, surpassing the Zacks Consensus Estimate of $114 million [2] - Research and development expenses decreased by 38% to $44.2 million due to reduced clinical study costs and changes in inventory accounting [4] - Selling, general and administrative expenses rose to $167.9 million from $80.8 million year-over-year, attributed to increased commercial activities for Rezdiffra [5] - As of March 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $848.1 million, down from $931.3 million at the end of 2024 [5] Product and Market Updates - Rezdiffra received accelerated FDA approval in March 2024, becoming the first approved therapy for MASH, with over 17,000 patients currently receiving treatment [3] - Madrigal has submitted a regulatory filing in the EU for Rezdiffra, with a decision expected in mid-2025 [8] - Ongoing studies, including the pivotal phase III MAESTRO-NASH biopsy study, aim to provide long-term safety and efficacy data to support full approval of Rezdiffra [9][10] - Positive two-year data from the MAESTRO-NAFLD-1 study indicated a significant reduction in liver stiffness among treated patients, reinforcing the drug's potential benefits [11][12][13] Stock Performance - Year-to-date, Madrigal shares have increased by 8.2%, outperforming the industry, which has seen a decline of 2.2% [6]