Madrigal’s Liver Disease Treatment Shows Promise in Advanced Patients

Madrigal Pharmaceuticals appears to be making significant strides in the lucrative MASH treatment market. Recent clinical findings indicate the company's drug Rezdiffra demonstrates effectiveness even in patients with advanced liver cirrhosis, potentially unlocking access to a multi-billion dollar additional treatment population.

The clinical achievements are already translating into commercial success. Madrigal reported net sales of $287.3 million for Rezdiffra during the third quarter of 2025, substantially exceeding analyst projections. More than 29,500 patients are currently receiving the medication, while the company maintains a strong financial position with $1.1 billion in liquid assets.

This positive trajectory has captured Wall Street's attention. Bank of America upgraded its rating to "Neutral" with a $445 price target, while UBS reaffirmed its "Buy" recommendation at $523. Even more optimistic assessments came from Oppenheimer ($590) and Citizens ($527). With shares trading around €420 and having climbed more than 37% since the start of the year, investors are questioning whether the current rally has further momentum or if expectations have already become overextended.

Compelling Clinical Evidence Emerges

At a recent specialist conference hosted by the American Liver Association, Madrigal presented impressive two-year data that generated considerable interest. The research demonstrated that Rezdiffra produced significant improvements in liver stiffness, liver enzymes, and fibrosis biomarkers among patients with compensated MASH cirrhosis.

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Particularly noteworthy were results from high-risk patients with low platelet counts, who experienced an average reduction of 7.9 kPa in liver stiffness. More importantly, two-thirds of all patients managed to lower their risk for clinically significant portal hypertension within the two-year study period. Among the high-risk cohort, the proportion with critical values dropped from 50% to 35%, providing clear evidence of therapeutic benefit even in advanced disease stages.

Treatment Continuity Proves Critical

The new data also revealed an essential requirement for successful outcomes: consistent treatment. Patients who interrupted their therapy between the first and second year experienced setbacks with disease progression resuming. However, researchers noted that positive effects reappeared when treatment was restarted, highlighting the necessity of ongoing medication administration. This finding suggests the potential for sustained revenue streams for Madrigal if long-term treatment becomes standard practice.

Regulatory Pathway and Future Potential

Madrigal is already advancing its Phase 3 outcome study for MASH cirrhosis, positioning the company to potentially expand regulatory approval to this significant new treatment indication. Success in this endeavor could substantially broaden the drug's market opportunity and strengthen Madrigal's competitive standing in the hepatology treatment landscape.