Institutional Investors Are Increasing Their Stake in Madrigal Pharmaceuticals
Madrigal Pharmaceuticals (MDGL) saw its first commercial drug, Rezdiffra, approved by the FDA for treating MASH in 2024. Despite a more than 7% drop this year, institutional investors remain bullish on the stock, with major holders including Baker Brothers Advisors and Janus Henderson Group collectively owning millions of shares. Rezdiffra's sales rose to $364.3 million in Q2, up 71% from last year, serving nearly 50,000 patients. While competition is growing—such as Novo Nordisk’s Wegovy—the drug appears resilient due to the expanding MASH patient population and its unique mechanism of action. Madrigal's strong cash reserves ($838.9 million) and Rezdiffra's patent protection until 2045 make it an attractive acquisition target for larger pharmaceutical firms looking to enter or expand in metabolic liver disease treatment.
Topics: FDA approval institutional ownership MASH treatment Rezdiffra sales growth