Why Madrigal Pharmaceuticals Stock Is Sinking Today

Core Viewpoint - Madrigal Pharmaceuticals' shares fell by 13.3% following the announcement of preliminary fourth-quarter and full-year 2024 results, despite beating analyst estimates for revenue [1][3]. Financial Performance - Preliminary Q4 net sales for the metabolic steatohepatitis (MASH) drug Rezdiffra were reported between $100 million and$103 million, while full-year 2024 net sales were between $177 million and$180 million [2]. - The company expects to end 2024 with approximately $931 million in cash, cash equivalents, restricted cash, and marketable securities [2]. Market Expectations - Analysts had estimated Q4 revenue at nearly$91.8 million and full-year revenue at around $168.3 million, which Madrigal surpassed [3]. - The decline in stock price was attributed to Madrigal not meeting higher "whisper numbers" that investors had anticipated, despite the official estimates being exceeded [4]. Product Launch and Future Prospects - Rezdiffra is in the early stages of its U.S. launch, having received regulatory approval in March 2024, and is the only approved treatment for MASH in the U.S. [5]. - The company is also preparing for a European launch in the second half of 2025, with ongoing clinical trials for Rezdiffra in compensated cirrhosis potentially serving as a catalyst for future growth [5].