Madrigal Pharmaceuticals (MDGL) Surged Following the Strong Launch and Execution of New Drug

Core Insights - Meridian Growth Fund reported a return of -1.78% in Q3 2025, underperforming the Russell 2500 Growth Index which returned 10.73% due to sector positioning and strict investment discipline [1] - The fund highlighted Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL) as a key stock, which saw a one-month return of 44.78% and a 52-week gain of 87.41% [2][3] Fund Performance - The third quarter of 2025 saw equities reach record highs, driven by technology gains and falling bond yields, alongside easing tariff rhetoric and renewed investments in AI infrastructure [1] - The U.S. Federal Reserve lowered rates by 25 basis points in mid-September, contributing to the market environment [1] Madrigal Pharmaceuticals, Inc. Insights - Madrigal Pharmaceuticals is focused on novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH) and has shown strong commercial performance with its drug Rezdiffra, projected to generate over $1 billion in sales this year [3] - The company has a low market penetration in the U.S., indicating potential for significant growth, with additional promising therapies in the pipeline [3] - In Q3 2025, Madrigal reported net sales of $287 million, reflecting a 35% increase quarter-over-quarter [4] Investment Sentiment - Despite the potential of Madrigal Pharmaceuticals, the company is not among the top 30 most popular stocks among hedge funds, with 48 hedge fund portfolios holding its stock at the end of Q3 2025 [4] - The fund trimmed its position in Madrigal as the share price appreciated, adhering to valuation discipline [3]