Richard Levy, a director at Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), has reported significant stock transactions according to a recent SEC filing. On November 1, Levy sold 5,000 shares of Madrigal Pharmaceuticals common stock, amassing approximately $1.5 million. The shares were sold at prices ranging from $300.10 to $304.29.
In addition to the sales, Levy also exercised options to acquire 5,000 shares at a price of $7.36 per share, totaling $36,800. Following these transactions, Levy holds 11,012 shares of the company. The sales were conducted under a pre-arranged 10b5-1 trading plan, which was adopted on November 30, 2023.
In other recent news, Madrigal Pharmaceuticals has made significant strides in its NASH treatment development. The company has completed patient enrollment for its MAESTRO-NASH OUTCOMES trial, which evaluates resmetirom as a potential treatment for compensated nonalcoholic steatohepatitis (NASH) cirrhosis. The trial involves 845 patients and is expected to last two to three years.
The company's drug, REZDIFFRA, has shown improvements in health-related quality of life for patients with NASH with moderate to advanced fibrosis and is expected to generate revenue of $31.3 million for the third quarter of 2024, according to consensus estimates. Piper Sandler maintained its Overweight rating on Madrigal Pharmaceuticals, highlighting the successful transition of REZDIFFRA from Phase 2b to Phase 3 trials.
Madrigal has also appointed Dr. Michael R. Charlton, an expert in NASH, as Senior Vice President of Clinical Development, further reinforcing its commitment to NASH research. The company is preparing for a potential European launch of REZDIFFRA in mid-2025, backed by a cash reserve of over $1 billion as of the second quarter of 2024. These are some of the recent developments in the company's ongoing efforts to improve treatment options for NASH patients.
InvestingPro Insights
Madrigal Pharmaceuticals (NASDAQ:MDGL) has been experiencing significant market momentum, as evidenced by its recent stock performance. According to InvestingPro data, the company has seen a remarkable 56.35% return in just one week and a 61.99% return over the past month. This aligns with the timing of Richard Levy's stock transactions, suggesting he may be capitalizing on the stock's strong performance.
The company's financial position appears solid, with InvestingPro Tips indicating that Madrigal holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This financial stability could be reassuring for investors, especially considering the company's current growth phase.
However, it's worth noting that Madrigal is not yet profitable, with a negative P/E ratio of -13.27. An InvestingPro Tip highlights that analysts do not anticipate the company will be profitable this year. This is not uncommon for biotech companies in the development stage, but it's an important factor for investors to consider.
The stock is currently trading near its 52-week high, with a price that's 99.99% of its 52-week peak. This, combined with the InvestingPro Tip that the stock's RSI suggests it's in overbought territory, might explain why insiders like Levy are choosing to sell some shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 18 additional tips for Madrigal Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
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