Madrigal Pharma down; Novo's Wegovy gets FDA approval for liver disease

Madrigal Pharmaceuticals

18/08/2025 15:42

** Shares of drugmaker Madrigal Pharmaceuticals MDGL.O down 1.1% at $365.90

** Novo Nordisk NOVOb.CO said on Friday the U.S. FDA had granted accelerated approval to its weight-loss drug, Wegovy, for treating a serious liver condition called metabolic dysfunction-associated steatohepatitis

** So far, the only available FDA-approved treatment for MASH is MDGL's drug, Rezdiffra, which was approved in 2024

** "We remain bullish on MDGL and believe Wegovy's approval should significantly expand the MASH market where MDGL's Rezdiffra is optimized for success," says Piper Sandler

** Brokerage maintains "overweight" rating on stock and PT of $400, which represents 9.61% upside to last close

** Rezdiffra has no contraindications, "which we believe further substantiates its clean safety and tolerability profile when compared to Wegovy" - Piper Sandler

** Brokerage says "Rezdiffra's convenient and safe product profile should be a key driver of favorability in the space"

** Fifteen of 17 brokerages rate the stock "buy" or higher, 1 "hold" and 1 "sell"; median PT is $445.63 - data compiled by LSEG

** Including session moves, shares up 18.3% YTD

 (Reporting by Siddhi Mahatole)

 ((siddhi.mahatole@thomsonreuters.com))