Madrigal Pharmaceuticals (MDGL) stock surged on Monday after the company announced positive results from a phase 3 clinical study evaluating its experimental drug resmetirom as a treatment for nonalcoholic steatohepatitis (NASH).
The data showed that the drug had achieved both primary endpoints of the pivotal study, with 30% of patients receiving the higher doses seeing NASH resolution with no worsening of fibrosis and 26% seeing fibrosis improvement by at least one stage with no worsening of NAS.
The lack of FDA-approved drugs for NASH means that resmetirom could become the first NASH drug on the market, making it a potentially lucrative opportunity for Madrigal. Furthermore, the news of the successful trial boosted investor confidence in the company and its stock price.
The massive jump in Madrigal Pharmaceuticals’ stock price was a surprise to many investors, as the stock had been trading lower since the beginning of the year. The surge in the share price was a welcome sight to investors, as it could signal the start of a lasting rally on the stock. In addition to the positive results from the clinical trial, Madrigal is also developing a NASH drug for chronic use. This could further increase the stock price.
Madrigal Pharmaceuticals is also making strides in developing a drug for type 2 diabetes, which is another potential area of growth for the company. The company has already conducted successful clinical trials for this drug and is looking to begin marketing it in the near future.
The news of the successful clinical trial of resmetirom sent Madrigal Pharmaceuticals’ stock price soaring, and the stock could continue to rise as the company develops more treatments for NASH and other diseases. The company’s success in the clinical trial could also lead to additional partnerships and collaborations with other companies in the medical field. With the potential for lucrative investments in the future, Madrigal Pharmaceuticals is a stock to watch.