Madrigal Shares Hit 52-Week High on Rezdiffra Sales Boom
The biotech firm's quarterly revenue crushed estimates, with its new liver drug generating an annualized run rate over $1 billion, overshadowing a wider-than-expected loss.
Madrigal Pharmaceuticals Inc. (NASDAQ: MDGL) saw its shares surge to a 52-week high on Tuesday after the company reported third-quarter revenue that significantly outpaced Wall Street expectations, fueled by the blockbuster launch of its liver disease drug, Rezdiffra.
In morning trading, Madrigal's stock jumped nearly 13% to $465.12, marking a new high for the year. The rally was a direct response to the company's announcement of $287.3 million in quarterly net sales, a figure that easily surpassed analyst consensus estimates of around $245 million. All of this revenue was generated by Rezdiffra, the first and only medicine approved by the U.S. Food and Drug Administration for the treatment of metabolic dysfunction-associated steatohepatitis (MASH), formerly known as non-alcoholic steatohepatitis (NASH).
The impressive top-line performance signaled to investors that the company's massive investment in commercializing Rezdiffra is yielding substantial returns. This enthusiasm overshadowed a wider-than-expected net loss of $5.08 per share. The loss was attributed to soaring operating expenses, which climbed to $401.2 million for the quarter, largely due to the costs of scaling up the drug's launch, manufacturing, and ongoing clinical trials.
"Six quarters into Rezdiffra's launch, we continue to execute on all fronts," said Bill Sibold, Chief Executive Officer of Madrigal, in a statement accompanying the results. "Quarterly sales are annualizing above $1 billion, positioning Rezdiffra as one of the most successful specialty launches in our industry."
The company provided key metrics underscoring the drug's rapid market adoption. As of September 30, 2025, more than 29,500 patients were on Rezdiffra therapy, and over 10,000 healthcare providers had prescribed the treatment. According to Sibold, this indicates that the company is still in the early stages of penetrating a market where over 90% of the target patient population has yet to be treated.
The successful commercialization of Rezdiffra is a pivotal moment for Madrigal and the broader biotech sector, as the medical community has sought an effective MASH treatment for years. The disease, characterized by fat buildup and inflammation in the liver, can lead to scarring, cirrhosis, and liver failure, and previously had no approved pharmacological therapy.
Wall Street has taken notice of the drug's powerful sales trajectory. Following the earnings release, several analysts reiterated their bullish stance on the company. Bank of America upgraded its rating to "neutral," while other firms like UBS and Oppenheimer maintained price targets well above the current trading price, at $523 and $590, respectively, according to MarketWatch reports. The consensus rating for the stock remains a "Moderate Buy," with an average analyst price target of approximately $525.
Despite its current unprofitability, Madrigal's financial position remains solid. The company reported holding $1.1 billion in cash, cash equivalents, and marketable securities, providing ample capital to fund its expansion and further clinical development.
Looking ahead, Madrigal is focused on extending its leadership in liver disease by building a pipeline of complementary therapies. The company is advancing an oral GLP-1 candidate intended for development in combination with Rezdiffra, aiming to offer tailored treatment regimens for a complex condition. For investors, the narrative is clear: while profitability may be on the horizon, the immediate focus is on the explosive, first-to-market revenue growth of a drug poised to define a new standard of care.