Refile: BUZZ-Madrigal Pharma falls as BofA initiates coverage with 'underperform' rating

Madrigal Pharmaceuticals

22/04/2024 16:35

(Corrects to remove extraneous word in headline)
    ** Shares of Madrigal Pharmaceuticals  MDGL.O  fall 6.3% to
$198.69
    ** Brokerage BofA initiates coverage with 'Underperform'
rating and a price objective of $150
    ** Investors have largely moved past co's fatty liver
disease drug Rezdiffra's best-case scenario FDA approval-with
skepticism over the ongoing first-to-market MASH launch and the
eventual commercial opportunity - BofA
    ** Says commercial hurdles such as inclusion criteria in
insurance coverage, diagnosis requirements along with a crowded
competitive landscape longer-term may cap peak commercial
opportunity for Rezdiffra
    ** Adds there is near-term risk from upcoming trial data
from rivals, particularly as Rezdiffra will only be on the
market for less than 18 months before GLP-1s are likely approved
    ** In March, Rezdiffra became the first treatment to receive
FDA's nod for the disease known as non-alcoholic steatohepatitis
(NASH), which was recently renamed metabolic
dysfunction-associated steatohepatitis (MASH)
   ** BofA forecasts peak sales of $4.1 billion below consensus
estimates of $5.5 billion
    ** MDGL stock down ~11% YTD

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))